The Bank of International Settlements (BIS) has released a report titled “The Crypto Ecosystem: Key Elements and Risks” which highlights the structural flaws of the cryptocurrency industry. The report suggests that the technology could be better utilized in a more trusted traditional financial system, and that the industry is too unstable to become a fixture in international economics.

BIS also pointed out deviations between the vision of decentralization that many in the industry uphold and the reality of the industry as it exists today.

The report also criticized the "self-referential" Defi sector for copying elements of the traditional finance system. The BIS report concludes that crypto and DeFi pose substantial risks to investors, particularly retail investors, and that its inherent structural flaws make it unsuitable to play a constructive role in the monetary system.