Crypto vs Central Banks: CoinFund Hits Back at BIS

CoinFund’s president slams BIS over anti-crypto bias, calling its DeFi containment plan dangerous. Discover why top crypto voices are pushing back hard.

CoinFund's President Takes a Stand Against BIS Anti-Crypto Report

The clash between old-school finance and decentralized innovation just escalated. Christopher Perkins, President of the blockchain investment powerhouse CoinFund, has openly criticized the Bank for International Settlements (BIS) over its latest stance on crypto and decentralized finance (DeFi).

In an explosive post on X (formerly Twitter) on April 19, Perkins called the BIS' April 15 report “ignorant and dangerous,” claiming the central banks' global advisor is operating from a place of "fear, arrogance, or ignorance."

Breaking Down the BIS Report

The BIS report, titled "Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications", recommended “containing” crypto to prevent its full integration into traditional finance systems. But Perkins sees this move as deeply flawed and risky.

According to Perkins, efforts to wall off crypto could unintentionally magnify systemic risks. He argued that the 24/7 nature of crypto markets offers liquidity advantages that traditional markets, which close every evening and weekend, simply can't match. Trying to separate these two ecosystems, he warns, could expose traditional finance to massive liquidity vulnerabilities.

Perkins’ Rallying Cry: ‘Crypto Is Not Communism’

In one of the most striking moments, Perkins declared:

“Crypto is not communism. It’s the new internet that provides anyone with a connection access to financial services.”

This quote captures the growing sentiment among Web3 and blockchain leaders that institutions like BIS are misunderstanding the revolutionary nature of decentralized technologies.

Many in the Web3 community argue that DeFi isn't just another product; it's a foundation for a more open, inclusive global economy.

DeFi: A Beacon of Transparency?

Another major criticism Perkins aimed at the BIS was their portrayal of DeFi as unstable. He countered that DeFi actually offers a “significant improvement” over the "imbalance and opacity" of the traditional financial world, or TradFi.

In traditional banking, many operations happen behind closed doors. DeFi, on the other hand, operates transparently on public blockchains where transactions are open for anyone to audit.

To drive his point home, Perkins challenged critics of anonymous DeFi developers by highlighting a double standard:

“When was the last time a traditional finance company published a list of its developers?”

Decentralized Finance doesn't hide the complexity but instead offers an open system where smart contracts and protocols are accessible for anyone to review.

Stablecoins and the Developing World

The BIS also sounded alarms about the use of USD-backed stablecoins like Tether (USDT) and USD Coin (USDC) in economically fragile countries.

Their concern? That these digital dollars could destabilize local economies.

Perkins’ counterargument: stablecoins aren't a threat; they're a lifeline. In places like Venezuela and Zimbabwe where hyperinflation ruins local currencies, stablecoins allow citizens to store their savings in a more stable asset.

“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,” Perkins noted.

Lightspark Co-founder Echoes the Criticism

Perkins isn't alone in his frustration. Christian Catalini, co-founder of Lightspark and a leading voice in blockchain innovation, also lashed out at the BIS, saying:

“They are writing parking regulations for a fleet of self-driving drones two technological leaps behind.”

This sharply worded analogy highlights the growing disconnect between traditional regulators and the fast-evolving world of crypto.

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The Bigger Picture: TradFi vs DeFi

This high-profile criticism isn't just about one report. It represents a broader ideological clash. The BIS, often called the "central bank for central banks," has consistently shown skepticism towards crypto.

Their 2023 roadmap called for:

Banning algorithmic stablecoins.
Tight regulation of DeFi lending platforms.
Promoting central bank digital currencies (CBDCs) as safer alternatives.

Many in the crypto community, however, see these moves as thinly veiled attempts at gatekeeping financial power.

What the BIS Really Wants

When you dig deeper into the BIS' recommendations, three key goals emerge:

Promoting CBDCs: Centralized digital currencies tightly controlled by governments.
Restricting DeFi: Limiting how decentralized platforms interact with traditional finance.
Increasing Oversight: More surveillance on crypto developers, users, and systems.

Clearly, the BIS envisions a future where financial innovation happens but only under tight central control.

Meanwhile, decentralized finance continues to champion freedom, transparency, and global accessibility.

Final Thoughts

Christopher Perkins’ fiery response to the BIS isn't just another Twitter rant it's a battle cry for the future of finance. His core message? Crypto isn't a problem; it's the solution. But if regulators cling to outdated models and fear-driven policies, they risk strangling one of the most important financial revolutions of our time.

The war between centralization and decentralization is just beginning. And how it plays out could shape the future of global finance for generations.

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