Perkins warned that a containment approach to crypto would expose the traditional financial system to massive liquidity risks “of unimaginable scale,” especially when the crypto market operates in real-time, 24/7, while traditional financial markets shut down after trading hours.“If implemented they will cause--not mitigate--the systemic risk they seek to prevent.”The report warned that the number of investors and amount of capital in crypto and DeFi have “reached a critical mass,” with investor protection becoming a “significant concern for regulators.”Source: Michael EgorovPerkins pushed back against the BIS’ claim that DeFi presents significant challenges, arguing instead that it represents a “significant improvement” over the “opacity” and imbalances of the traditional financial system.
Sure, public companies provide a degree of disclosures and transparency, but they seem to be dying off in favor of private markets.”Perkins also critiqued the BIS’s concern around stablecoins that it could lead to “macroeconomic instability in countries like Venezuela and Zimbabwe.”“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 said.
Related: Crypto industry is not experiencing regulatory capture — AttorneyResponding to the BIS’s concern about the anonymity of DeFi developers, Perkins questioned its relevance:“Sorry, but when was the last time a TradFi company published a list of its developers?
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Author / Journalist: Cointelegraph by Ciaran Lyons
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