#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) has recently expressed concerns about banks using public blockchains, such as Ethereum, and has questioned its member banks. According to unredacted documents obtained by Coinbase through a Freedom of Information Act request, the FDIC appears to discourage banks from using public blockchains and requires banks to undergo a new, detailed review process before using them. The FDIC believes that the decentralized and permissionless nature of public blockchains would result in bank activities being completely public and uncontrollable by third parties, while private blockchains could be restricted. Additionally, the FDIC has requested that member banks cease implementing services related to the buying and selling of Bitcoin and has instructed member banks to "pause all activities related to crypto assets."
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is taking a cautious approach to banks using public blockchains like Ethereum, requiring banks to undergo more rigorous scrutiny before using them. This news comes from a trove of unredacted crypto-related communications between the FDIC and its member banks obtained by Coinbase through a Freedom of Information Act request. The documents reveal that the FDIC expressed disapproval of a bank's plan to launch a "bank digital deposit" program on a public blockchain, demanding that the bank undergo a new, detailed review process before launching any products on public blockchains. The FDIC appears to favor banks using private permissioned networks over public blockchains, as the decentralized and permissionless nature of public blockchains would result in activities being completely public and uncontrollable by third parties. Additionally, the FDIC has requested that member banks cease implementing services related to the buying and selling of Bitcoin and has instructed member banks to "pause all activities related to crypto assets." This move indicates the FDIC's concerns about banks using crypto assets and public blockchains, and its desire to strengthen regulations to ensure banks can effectively manage risks when using these technologies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC does not encourage member banks to use public blockchains such as Ethereum, citing concerns about their decentralized and transparent nature.
FDIC prefers member banks to use private permissioned networks instead of public blockchains, as private networks allow for control over participants and activities.
FDIC has established a rigorous review process for member banks to launch products using public blockchains and may require banks to pause activities related to crypto assets.
FDIC's concerns about banks using public blockchains may stem from worries about security, privacy, and regulatory compliance.