Crypto Isn’t Communism — It’s the Future, and the BIS Can’t Handle It!

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Ah, the Bank for International Settlements (BIS) – always ready with their outdated views and warnings about the dangers of crypto. If there’s one thing we can all agree on, it’s that they’ve certainly got a knack for being a few centuries behind the times. Christopher Perkins, president of CoinFund, didn’t hold back when he called out the BIS’ ill-informed report on crypto, decentralized finance (DeFi), and stablecoins. He went so far as to label their take as “dangerous” – a bold claim, but hardly shocking. Let’s see why.

In a scathing post on X (formerly known as Twitter, of course), Perkins tore into the BIS’s April 15 report titled “Cryptocurrencies and decentralized finance: functions and financial stability implications.” According to him, the BIS’s recommendations are fueled by “fear, arrogance, or ignorance,” which, let’s face it, is a delightful mix of traits to base a financial system on. Perkins went further to accuse them of being dangerously uninformed, especially when it comes to their understanding of the crypto space. Ouch! 🧐

BIS Recommendations: A Recipe for Disaster

But wait, it gets better. Perkins decided to take on the BIS’s most ridiculous claim: that crypto is some form of communism. Now, we all know crypto has many things, but communism? Really? “Crypto is not communism,” Perkins retorted. “It’s the new internet,” he said, as though explaining this to someone who just discovered dial-up. He reminded us all that crypto is a decentralized system accessible by anyone with an internet connection, and you can’t control it any more than you can control the internet itself. Next time you hear someone say, “crypto = communism,” just send them a link to this quote. 🤦‍♂️

But Perkins didn’t stop there. He warned that the BIS’s “containment” approach would expose traditional finance to unimaginable liquidity risks. Real-time, 24/7 crypto markets vs. traditional financial systems that clock out at 4:00 PM? Yeah, not exactly a level playing field. Perkins wasn’t shy to say that the BIS’s strategy wouldn’t mitigate systemic risk — it would make it worse. Classic move.

“If implemented, they will cause — not mitigate — the systemic risk they seek to prevent.”

That’s right, folks. In the grand game of global finance, the BIS might just be playing checkers while the rest of us are deep into a game of multi-dimensional chess.

Now, what about the BIS’s concern that the rise of crypto and DeFi means a surge in investor numbers and capital? Well, Perkins had something to say about that too. He pointed out that DeFi is a massive improvement over the old-school, opaque financial system. A bold claim, but isn’t it true that the traditional system has always been a bit of a black box? Talk about some serious financial sleight of hand! 🧙‍♂️

As for the BIS’s concern about the anonymity of DeFi developers, Perkins simply asked the question: When was the last time a traditional finance (TradFi) company published a list of its developers? Exactly. Traditional companies might provide some disclosures, but let’s face it: public companies are on the decline, with private markets taking over. Perkins might as well have said, “BIS, please stop trying to reinvent the wheel when you’ve clearly never seen a car.”

“Sorry, but when was the last time a TradFi company published a list of its developers?”

And then, there’s the issue of stablecoins. The BIS has a real bone to pick with the idea that stablecoins might be a little too close to “macroeconomic instability,” especially in places like Venezuela and Zimbabwe. Perkins wasn’t having it. “If there’s demand for USD stablecoins and it helps improve the condition of anyone in the developing world, perhaps that is a good thing,” he argued. Finally, some common sense! It’s almost as if Perkins understands that stablecoins might actually help people in places where traditional financial systems are utterly broken. 💸

But Perkins wasn’t alone in his scathing critique of the BIS. Christian Catalini, co-founder of Lightspark, also took to X to express his disdain for the report. He summed it up perfectly with this analogy: writing parking regulations for a fleet of self-driving drones. It’s “earnest work,” he said, “two technological leaps behind.” Honestly, I’m just glad he didn’t compare it to trying to catch a train that left 20 minutes ago. 🚂

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2025-04-20 07:29