CoinFund president criticises BIS report on cryptocurrency

21st April 2025 – (New York) Christopher Perkins, president of CoinFund, has expressed strong disapproval of the Bank for International Settlements’ (BIS) recent report on cryptocurrency. Perkins labelled its recommendations as “completely uninformed and frankly, dangerous,” taking particular issue with the report’s approach to regulating cryptocurrency through containment.

Perkins, who experienced the 2008 financial crisis firsthand as a trader at Lehman Brothers, warned that separating traditional finance from cryptocurrency markets could lead to significant liquidity risks. He argued that isolating the 24/7 settlement capabilities of crypto from the time-limited traditional financial systems could trigger a systemic crisis. “Forcing this division could lead to the next financial disaster,” Perkins cautioned, citing his experience during one of the biggest financial collapses in history.

The CoinFund president rejected the BIS’s framing of cryptocurrency regulation as akin to Cold War containment strategies. “Crypto is not communism; it’s the new internet providing global access to financial services,” Perkins stated. He argued that controlling cryptocurrency is no more feasible than controlling the internet itself and called for a modernisation of traditional financial systems to integrate blockchain technology.

Perkins also criticised the BIS report for its concerns about information asymmetries in decentralised finance (DeFi), particularly its focus on anonymous developers. He pointed out that traditional financial institutions do not typically disclose their developer teams, questioning the double standard.

Additionally, Perkins challenged the BIS’s concerns about the potential macroeconomic instability caused by stablecoins in countries like Zimbabwe and Venezuela. He argued that if stablecoins provide financial relief to individuals in developing nations, they could be a positive force. “People worldwide deserve access to financial services, regardless of their country’s monetary stability,” Perkins remarked.

Instead of isolating cryptocurrencies, Perkins advocated for regulatory frameworks that encourage the adoption of public blockchains and blockchain technology. “Capital rules should not ‘contain’ blockchain innovation; they should actively promote it,” he argued, emphasizing the need for regulation to support, rather than stifle, technological progress.

The BIS report, titled “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications,” had acknowledged the growing importance of cryptocurrency with the rise of ETFs, tokenised assets, and stablecoins. However, Perkins strongly objected to its regulatory recommendations, urging a more forward-thinking and inclusive approach to integrating crypto into the global financial system.