It seems to be a tiny but important issue is not taken into account in such a wetdream scenario.

1. We have tried before, but it did not take off.
2. The agreement is, to force settlement in fiat currency if settling in physical is not possible.

This particular item is very important, and functions as not only a stop-gap but is actually what keeps the paper market afloat.

3. Physical is harder to come by, then a couple of years ago. IF this trend continues, a shortage in physical will emerge, logically. I would then expect the Premium for Physical to skyrocket, whilst local availability would approach zero.

4. In the papermarket, it would not translate, as one would only have to throw contracts at it, increasing the size of the papermarket, based on a bigger cash allocation to make the increase in paper feasible.

5. We still have a plunge protection team. And trading can be paused or prohibited.

That said, it would probably show the way in which the system is rigged against us, just like fingerprinting a browser, or a network.