A major conflict erupted between the leaders of the cryptocurrency industry and the banking organizers on how to deal with the growing encryption market.
Coinfund Christopord Perkens’ president described the bank as recent recommendations on organizing the cryptocurrency “dangerous” for the entire financial system.
The banking organizers pressure to “contain” the encryption markets
Published bis a a report On April 15, entitled “cryptocurrencies and decentralized financing: jobs and implications for financial stability”, which urged a strategy to isolate the digital currency from traditional financing.
Birkins was launched on April 19 through a publication on X (formerly on Twitter), indicating that BIS recommendations stem from a “mix of fear, arrogance, ignorance” and “completely not perfect”.
the bis_org A new paper has just published, “cryptocurrencies and decentralized financing: jobs and financial stability.” The good news is that the authors finally realize that the developments in encryption (including the growth of the circulating investment funds, the numbers and the distinguished real world …
Christopher Perkins
NYC (@perkinscr97) April 19, 2025
At the heart of the conflict is a repeated approach to dealing with cryptocurrencies and Defi (Decentralized financing). Banking organizers arose because investments in this field “have reached a critical bloc”, which makes the protection of investors a “great concern for organizers”, according to the report.
Industry expert warns of a “unimaginable scale” of risks
Perkins rejected a repeated containment approach, saying frankly: “The encryption is not Communism.“Refining digital assets instead as” the new internet that provides anyone access to financial services. “
According to Berkins, attempts to isolate digital currency markets can they have a great opposite results. He warned that such a policy will present traditional funding for the “unimaginable” liquidity risk. This danger is there because the encryption markets operate continuously, while traditional financial markets are closed after trading hours.
“If it is implemented, this will reduce – the regular risks he seeks to prevent,” Perkins stated in his response.
Discussion centers about the lack of disclosure of his identity to developers
The BIS report expressed special concern about the lack of disclosure of Defi developers. Perkins asked this focus, asking: “Sorry, but when it was the last time a Tradfi The company published a list of its developers? “
He said that Defi actually represented a “great improvement” about what he called “the departure” of traditional financial systems. While public companies offer some disclosures, Peoples noticed that they “seem to die in favor of private markets.”
Stablecoin fears rejected by Bitcoin advocates
The banking organizers also made warnings about StablecoinsThis indicates that they may lead to “the instability of the macroeconomic economy in countries such as Venezuela and Zimbabwe.”
Perkins faced this opinion, which indicates that “if there is a demand for stablecoins in US dollars and helps to improve the condition of anyone in the developing world, this may be good.”
Distinctive image from Getty Images, the tradingvief chart
