Article Image

IPFS News Link • Currencies

Is Collapse of FTX a Faster Version of Fiat Currency Collapse?

• Next Big Future - Brian Wang

Here is some data about external debt. The foreign debt (not in domestic currency) is what can be greater than the foreign currency reserves of a country.

Under normal situations, if the external debt is held by another country that does not want to cause a cascade of failures then the countries would work together to prevent the collapse. The countries are generating real value and returns so it is possible for nations to stave off a complete FTX style collapse.