Capital requirements for banks from the Basel Committee on Banking Supervision (BCBS), which are banking standards, have created a “chokepoint,” designed to –throttle the growth of the crypto industry, according to Chris Perkins, president of the investment coinfund.
Current capital rules lower the return of a bank to equity (ROE), a critical measure of profitability, by forcing higher reserve requirements for crypto handling, doing crypto -related activities Too expensive for banksPerkins told cointelegraph.
“It’s a different type of chokepoint, which is not direct. It’s a very nuananced way of suppressing activity by doing so expensive for the bank to do activities like them, ‘I can’t,'” he added.
If I have a certain amount of capital I want to invest, I will invest it in ROE’s high businesses, the ROE businesses are not low, ”he continued.
In April, Perkins criticized the bank for international arrangements for this proposals to impose Requirements to the known-lying . saying that they violate the basic principles of unauthorized networks.
The truly systematic risk of the financial system derives from the asymmetry of the existence of online, without permission, 24/7, peer-to-peer, decentralized networks that can change liquidity in real time as traditional financial infrastructure closes the nights and weekends and refuses to adapt to technology change, Perkins said.
Related: The new BIS plan can make ‘dirty’ crypto more difficult
Bank for International Settlements remains hidden against crypto
The Bank for International Settlements (BIS), which acts as a central bank for Sovereign Central Banks and organizes BCBS conferences, released an April report saying that Crypto can stop the financial system.
Those with the report also argued that crypto market growth worsens the wealth gap and urged the strict government regulation in response.
In June, BIS released a follow-up Report entitled “Stablecoin Growth: Policy Challenges and Strategies,” claiming that Stablecoins failed as money and can create systematic risks to the financial system.
“The rising capitalization of Stablecoins’ and the increasing financial systems have reached a stage where potential spillovers in that system will not be decided,” written by those who set the report.
Bis is repeated -pushed for Adopting central digital currencies .
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