‘Crypto Is Not Communism’ – Why Experts Are Pushing Back Against BIS’ Bold Claims

In a fiery response to a recent report from the Bank for International Settlements (BIS), leading voices from the crypto industry have called out the institution for what they see as a deeply flawed and outdated understanding of the digital asset space.

Christopher Perkins, the president of blockchain investment firm CoinFund, didn’t hold back — and he’s not alone. As discussions heat up around regulation, DeFi, and the future of stablecoins, the crypto world is pushing back hard against what it sees as a “dangerous” narrative.

What’s Going On Between BIS and the Crypto Industry?

Earlier this week, the BIS released a report titled “Cryptocurrencies and Decentralized Finance: Functions and Financial Stability Implications.” In it, the organization proposed a “containment” strategy — essentially suggesting that crypto and traditional finance (TradFi) should remain separated to protect the global financial system.

To the crypto industry, that recommendation felt more like a step backwards than a protective measure.

“Crypto Is Not Communism” — A Blunt Rebuttal

In a viral X (formerly Twitter) post, Perkins called the BIS report “uninformed and, frankly, dangerous.” He said the institution’s stance likely stems from “a mix of fear, arrogance, or ignorance.” And one of his most memorable lines? “Crypto is not communism. It’s the new internet.”

According to Perkins, isolating crypto from TradFi will do more harm than good. In fact, he warns that cutting off crypto — which operates 24/7 in real-time — could leave traditional markets vulnerable to liquidity shocks of “unimaginable scale,” especially since those markets shut down after business hours.

Is DeFi Really the Problem? Or the Solution?

The BIS report also took aim at decentralized finance (DeFi), raising concerns about the lack of transparency and the anonymous nature of developers in the space.

Perkins wasn’t having it.

“When was the last time a traditional financial firm published a list of its developers?” he asked. “Public companies do offer disclosures, but most of the financial world is leaning toward private markets anyway.”

Instead of viewing DeFi as a threat, Perkins believes it actually solves many problems that have plagued TradFi for years — especially around transparency, accessibility, and centralization.

Stablecoins, Venezuela, and Why the BIS Might Be Missing the Point

Another section of the BIS report warned that widespread use of stablecoins — especially USD-backed ones — could lead to macroeconomic instability in countries like Venezuela and Zimbabwe.

Perkins flipped that argument on its head.

“If people in developing countries want to use stablecoins to improve their financial conditions, maybe that’s a good thing,” he said. In his view, the demand for USD-backed digital assets speaks to the real-world value they offer, especially in regions where local currencies are collapsing.

BIS: Two Steps Behind?

Christian Catalini, co-founder of Lightspark, also chimed in with his own take on X. He likened the BIS report to “writing parking regulations for a fleet of self-driving drones” — a pointed way of saying that the BIS is at least two major tech shifts behind the curve.

Final Thoughts: Old Institutions, New Technology

At its core, this debate isn’t just about crypto. It’s about how traditional financial institutions are grappling with an evolving digital world that doesn’t fit neatly into old models.

The pushback from industry leaders like Perkins and Catalini shows that crypto isn’t just here to stay — it’s actively challenging the way we think about financial systems.

And maybe that’s exactly what it was meant to do.

FAQs: BIS vs. Crypto – What You Need to Know

1. What is the BIS report about?
The BIS report critiques the integration of crypto and DeFi with traditional finance, calling for a “containment” strategy to reduce systemic risks.

2. Why did Christopher Perkins criticize the BIS?
Perkins believes the BIS recommendations are based on fear and outdated thinking, and could actually increase financial risks rather than prevent them.

3. What’s the issue with BIS and DeFi?
BIS claims DeFi lacks transparency and poses regulatory risks. However, Perkins argues DeFi is more transparent than traditional finance and offers significant improvements.

4. Why is stablecoin adoption controversial?
The BIS suggests stablecoins may cause instability in weak economies, while crypto leaders argue they provide real financial benefits in such regions.

5. What does “crypto is not communism” mean?
It’s a rebuttal to the idea that crypto needs strict control. The phrase highlights that crypto is about open access, not centralized restriction — like the internet itself.