PANews reported on April 21 that according to Cryptonews, the Bank for International Settlements (BIS) released a report advocating strict differentiation between digital assets and traditional finance, which was fiercely criticized by the crypto industry. Christopher Perkins, president of blockchain investment company CoinFund, called the BIS recommendations "dangerous and ignorant", fearing they might have a counterproductive effect on the global financial system. He criticized BIS's call to "contain" cryptocurrencies, believing it stems from fear and technological misunderstandings, and warned that isolating the crypto ecosystem could lead to significant liquidity risks, given that crypto markets operate 24/7 while traditional finance is constrained by trading hours.
The BIS report was concerned that the rapid growth of cryptocurrencies and DeFi markets could disrupt traditional market stability and increase investor risks. Perkins countered that DeFi has higher transparency and is more decentralized, superior to traditional finance. He also pointed out that many traditional financial institutions do not publish developer lists, questioning BIS's discomfort with anonymous DeFi development. Additionally, Perkins disagreed with BIS's warning about stablecoins potentially disrupting monetary policies in countries like Venezuela and Zimbabwe, believing that if stablecoins are in demand and can improve conditions in developing countries, it might be a good thing.
Previous news, the Bank for International Settlements stated: The crypto market has reached a "critical scale" and needs to be wary of stability risks.
