A huge fight has broken out between crypto leaders and banking watchdogs over how to deal with the booming crypto market. CoinFund’s president, Christopher Perkins, thinks the Bank for International Settlements (BIS) recent suggestions on crypto rules are a serious threat to the entire financial system.
Regulators Want to Isolate Crypto
The BIS released a report in April urging a plan to keep digital currencies separate from traditional finance. They’re worried about the growing investment in crypto and the need to protect investors.
Perkins: The BIS is Wrong
Perkins slammed the BIS’s ideas, calling them a mix of “fear, arrogance, and ignorance.” He argues that trying to isolate crypto markets is a terrible idea that would create huge problems.
The “New Internet” of Finance
Perkins sees digital assets as “the new internet,” giving everyone access to financial services. He says isolating crypto would create massive liquidity risks for traditional finance because crypto markets are always open, unlike traditional markets. He believes the BIS plan would actually increase systemic risk, not reduce it.
The Debate: Anonymity and Transparency
The BIS report was particularly concerned about the anonymity of DeFi (decentralized finance) developers. Perkins questioned this, pointing out that traditional finance companies don’t usually publish lists of their developers either. He argued that DeFi is actually more
transparent than traditional finance.
Stablecoins: A Boon or a Bane?
Regulators also raised concerns about stablecoins, worrying they could cause economic instability in some countries. Perkins countered that if stablecoins help people in developing nations, that’s a positive thing.
