Recently, BIS published a report entitled “Cryptocurrencies and decentralized finances: functions and consequences for financial stability”, in which researchers noted the growing role of cryptocurrencies in the financial sector. Despite the rapid development of cryptocurrency exchange funds (ETFs), stablecoins and tokenized assets, the authors of the report advocated a restraining approach to the regulation of cryptocurrencies.
However, Perkins warned that it is impossible to artificially share traditional finances and cryptocurrency market, where transactions can be carried out around the clock, otherwise it would create liquidity risks. Perkins noted that he was already a witness to the 2008 financial crisis, being a trader in the bankrupt financial corporation Lehman Brothers. Therefore, instead of restraining the crypto industry, Perkins proposed upgrading traditional financial systems, integrating the blockchain into them. Regulation should focus on updating outdated systems, and not on isolation of the latest technologies, the president of Coinfund noted.
“Cryptocurrency is not communism. You cannot control it more than the Internet. Cryptoactives are a new Internet that provides all people with access to financial services. Capital rules should not restrain open blockchains, on the contrary, they need to be encouraged, ”said Perkins.
He also argued with BIS criticizing anonymous developers in decentralized finance projects (Defi), noting that traditional financial institutions also usually do not publish lists of their developers. The President of Coinfund did not agree with Bis’s fears that stablecoins could strengthen macroeconomic instability in developing countries such as Zimbabwe and Venezuela.
“If there is a demand for stablecoins tied to the US dollar, and this helps to improve the financial situation of people, maybe this is good? People around the world deserve access to the main financial services, regardless of the monetary stability of the country where they live, ”Perkins was indignant.
In November, Bis expressed fears that the Defi market may be at risk – not all participants will be able to get free access to it. Earlier, Bis said that the massive implementation of stablecoins is hindered by distinguishing regulatory requirements in different countries.
Source: Bits
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