‘Crypto Is Not Communism’ — CoinFund Exec Slams BIS’ Anti-Crypto Stance

‘Crypto Is Not Communism’ — CoinFund Exec Slams BIS’ Anti-Crypto Stance

CoinFund President Christopher Perkins has sharply criticized the Bank for International Settlements (BIS) over its recent stance on cryptocurrency and decentralized finance (DeFi), calling its recommendations dangerous, misinformed, and rooted in fear and arrogance.

In a strongly worded post on X (formerly Twitter) dated April 19, Perkins blasted the BIS for its April 15 report, “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications.” The report advocates for a “containment” approach—essentially isolating crypto from the traditional financial system to avoid potential systemic risks.

“Many of their recommendations and conclusions — perhaps due to a mix of fear, arrogance, or ignorance — are completely uninformed and, frankly, dangerous,” Perkins wrote.

Source: Michael Egorov

Containment Approach Could Backfire

Perkins warned that trying to wall off crypto from traditional finance (TradFi) could do more harm than good, exposing the legacy financial system to “liquidity risks of unimaginable scale.” The core issue, he argued, lies in the mismatch between the 24/7 real-time nature of crypto markets and the limited trading hours of traditional finance.

“If implemented, [these recommendations] will cause—not mitigate—the systemic risk they seek to prevent,” he said.

Perkins likened crypto to the internet, emphasizing that it’s a decentralized global system that cannot be contained or shut down by outdated financial institutions.

“Crypto is not communism. It’s the new internet that provides anyone with a connection access to financial services. You cannot control it any more than you control the internet.”

DeFi Offers Transparency, Not Threats

The BIS report raised concerns about DeFi’s alleged anonymity and lack of accountability. Perkins pushed back, arguing that DeFi improves on the opacity and inefficiencies of TradFi systems. He dismissed criticisms about anonymous developers, noting that most traditional financial firms don’t disclose their development teams either.

Source: Christopher Perkins

“When was the last time a TradFi company published a list of its developers? Public companies provide some transparency, but they’re increasingly being replaced by private markets,” he noted.

Stablecoins and Emerging Markets

The BIS also warned that USD-pegged stablecoins could create macroeconomic instability in developing nations like Venezuela and Zimbabwe. Perkins countered that stablecoins can actually serve as a lifeline in such economies, offering financial access and protection from hyperinflation.

“If there is demand for USD stablecoins and it helps improve the condition of anyone in the developing world, perhaps that is a good thing,” he argued.

Wider Criticism of the BIS Report

Perkins wasn’t alone in challenging the BIS narrative. Christian Catalini, co-founder of Lightspark and a long-time crypto advocate, offered his own critique on X, suggesting the BIS is fundamentally out of step with the pace of innovation.

“Think: writing parking regulations for a fleet of self-driving drones — earnest work, two technological leaps behind,” Catalini quipped.

A Growing Divide

The clash between the BIS and crypto leaders highlights the widening gap between traditional financial institutions and the digital asset industry. While the BIS calls for caution and containment, leaders like Perkins argue that embracing innovation and building a more inclusive, real-time financial system is the only path forward.

With the stakes rising and the crypto market continuing to grow in both capital and influence, how regulators choose to respond could shape the future of global finance.