CoinFund President Criticizes BIS Crypto Report
Christopher Perkins, coinfund’s president, has criticized the Bank for International Settlements’ (BIS) recent paper on crypto. He called its recommendations “uninformed adn dangerous.”
The BIS report,titled “Cryptocurrencies and decentralized finance: functions and financial stability implications,” recognizes crypto’s growing importance. It mentions the rise of etfs, stablecoins, and tokenized assets. However,perkins strongly disagrees with the paper’s containment approach to crypto regulation.
Perkins argues that crypto is like the new internet, providing financial access to everyone. He rejects the comparison to Cold War containment strategies. “You can’t control crypto any more than you can control the internet,” he said.
Perkins, who witnessed the 2008 financial crisis, warns that separating customary finance from crypto could create liquidity risks. He believes this division could lead to the next systemic crisis.
Rather of containment, perkins advocates for modernizing traditional financial systems to integrate with blockchain technology. He suggests that regulation should focus on updating legacy systems rather than isolating new technology.
Perkins also challenged the BIS report’s concerns about details asymmetries in decentralized finance (DeFi). He questioned the criticism of anonymous developers in DeFi projects. He noted that traditional financial institutions typically do not publish lists of their developers.
Perkins took issue with the BIS’s worry that stablecoins would cause macroeconomic instability in nations like Zimbabwe and Venezuela. He believes that if there is demand for USD stablecoins and it helps improve conditions in the developing world, it could be a good thing.
Perkins argues that people worldwide deserve access to basic financial services nonetheless of their country’s monetary stability.
