#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) is taking a cautious approach to banks using public blockchains like Ethereum, issuing warnings to member banks that they will need to undergo a new, detailed review process before launching any products on public blockchains. The FDIC believes the decentralized and transparent nature of public blockchains poses risks and encourages banks to use private permissioned networks instead. This move stems from the FDIC's concerns about banks' use of crypto assets and reflects regulators' cautious approach to the rapid development and potential risks of the crypto space.
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum and requires banks to undergo more rigorous scrutiny before using them. According to documents obtained by Coinbase through a Freedom of Information Act request, the FDIC sent a letter to a member bank in March 2022 expressing concerns about the bank's plan to launch a "bank digital deposit" program on a public blockchain. The FDIC believes that the decentralized and transparent nature of public blockchains could pose risks and recommends that banks use private permissioned networks. Additionally, the FDIC has also requested that member banks suspend all activities related to crypto assets, including the buying and selling of Bitcoin. These actions indicate that the FDIC is taking a conservative approach to banks' involvement in the cryptocurrency space and wants to ensure that banks can effectively manage risks when using blockchain technology.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains such as Ethereum, citing the risks associated with the decentralized and transparent nature of public blockchains, and requiring banks to conduct more rigorous reviews before using public blockchains.
FDIC tends to support member banks using private permissioned networks, as private networks can control participants and activities, reducing regulatory risks.
FDIC has expressed concerns about banks using public blockchains for digital deposit services, citing potential security and regulatory risks.
FDIC has required member banks to pause activities related to crypto assets, including buying and selling Bitcoin, demonstrating its cautious approach to the cryptocurrency space.