The Bank for International Settlements (BIS) has come under fire from the crypto industry for its recent push to isolate digital assets from traditional finance.
Christopher Perkins, president of CoinFund, called the BIS’s latest report not only outdated but potentially dangerous to the stability of global markets.
According to Perkins, the BIS misunderstands the nature of crypto and DeFi, viewing them as threats rather than innovations. He warned that efforts to “contain” digital finance could backfire, exposing traditional systems to massive liquidity mismatches. “You can’t box in crypto any more than you can fence off the internet,” he argued.
One of his biggest concerns lies in the BIS’s failure to acknowledge crypto’s 24/7, real-time nature—something that sharply contrasts with the limited hours and slower infrastructure of legacy finance. Trying to wall off these two ecosystems, he believes, increases the risk of disruption rather than reducing it.
Perkins also dismissed criticisms around DeFi’s transparency, anonymity, and developer accountability. He pointed out the irony of demanding full disclosures from DeFi developers while private institutions often operate behind closed doors with far less scrutiny.
As for the BIS’s warnings about stablecoins potentially destabilizing fragile economies, Perkins took a different view—arguing that if dollar-backed digital assets are improving financial access in places like Venezuela or Zimbabwe, then they may be part of the solution, not the problem.
Joining the criticism, Lightspark’s Christian Catalini likened the BIS report to applying outdated rules to futuristic systems, saying it’s akin to writing traffic laws for drones based on parking meters.
As the tension between regulators and innovators continues to grow, voices from the crypto world are making it clear: outdated frameworks can’t govern technologies they barely understand.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/crypto-community-warns-bis-approach-may-do-more-harm-than-good/