According to Chris Perkins, president of the Investment Firm Coinfund, the capital requirements for banks on Banking Supervision (BCBS) form a “Chokpoint” designed to throw the development of the Crypto industry, banking supervision (BCBS), which crafts banking standards.
Current Capital Rules reduce the bank’s return on equity (ROE), a significant profitability in banking, forcing the high reserved requirements to catch Crypto, makes crypto-related activities very expensive for banks, Perkins told Coinlagraph.
He said, “This is a different type of Chokpoint, in which it is not direct. It is a very fine way to suppress the activity by making activities so expensive for the bank, which they are liked, ‘I can’t,’ he said.
If I have a certain amount of capital that I want to invest, I am going to invest it in high Roe businesses, not in low Roe businesses, ”he continued.
In April, Perkins criticized the bank for international settlements for themselves Proposals Decentralized Finance (Defi) to know other heritage banking rules on protocols and stablecoins, KYC) and other heritage to implement banking rules, Saying That they violate the main principles of the networkless network.
The real systemic risk to the financial system comes from the inequality of having online, permitted, 24/7, peer-to-peer, decentralized network that can move liquidity in real time, while traditional financial infrastructure structure closes on nights and weekends and denies to adapt to the changing technology, said Perkins said.
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Bank is complicated against Crypto for international settlements
Bank for International Settlements (BIS), which serves as a central bank for sovereign central banks and organizes BCBS conferences, released a report in April claiming that Crypto could destabilize the financial system.
The authors of the report also argued that the development of the Crypto market increases the money gap and urges strict government regulation in response.
In June, BIS issued a follow -up Report Title “StableCoin development: Policy challenges and approaches”, which claimed that Stablecoins fails as money and can cause systemic risk in the financial system.
The authors of the report wrote, “Stabecrims’ growing market capitalization and growing interrelations with traditional financial systems have reached a phase where the possible spillover of that system can no longer be rejected,” has written by the authors of the report.
The BIS has repeatedly pushed private bank digital currencies (CBDCs) and other centralized digital technologies to adopt privately and decentralized as an alternative to decentralized cryptocurrency.
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