Dossier
trust deficit
Coverage of trust deficit in the Nexus archive.
- Proof of Reserves: What It Means for Exchange Trust
The collapse of FTX in 2022 revealed that customer deposits were diverted to an affiliated trading firm, creating a trust deficit in crypto exchanges. Users previously trusted exchanges to hold their assets, but this incident highlighted the need for proof of reserves to ensure transparency.
- The Fed and BoE have a trust deficit
The Federal Reserve (Fed) and the Bank of England (BoE) are experiencing a trust deficit. This loss of faith in central banks may be contributing to rising long-term inflation expectations.