#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum, requiring them to undergo more rigorous scrutiny before doing so. Communications between the FDIC and member banks obtained by Coinbase through a Freedom of Information Act request reveal that the FDIC is concerned about banks using public blockchains instead of private permissioned networks, citing the decentralized and transparent nature of public blockchains as a risk. The FDIC has even asked some banks to pause activities related to crypto assets, including buying and selling Bitcoin. This event indicates that the FDIC is cautious about banks participating in the crypto space and wants to implement stricter regulations on banks' use of public blockchains.
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 rigorous scrutiny before using them. Documents obtained by Coinbase through a Freedom of Information Act request, revealing communications between the FDIC and member banks, show that the FDIC believes the decentralized and transparent nature of public blockchains could pose risks and encourages banks to use private permissioned networks. In a March 2022 letter, the FDIC explicitly stated that a bank planning to launch a "bank digital deposit" program on a public blockchain must undergo a new, detailed review process. Additionally, the FDIC has requested that member banks cease implementing services related to buying and selling Bitcoin and has instructed member banks to "pause all activities related to crypto assets." These actions indicate that the FDIC is cautious about banks using cryptocurrencies and public blockchain technology and wants to conduct more in-depth assessments and regulation before these technologies are applied to banking operations.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains like Ethereum, citing the risks associated with the decentralized and transparent nature of public blockchains.
FDIC believes that using private permissioned networks is safer than public blockchains because private networks can control participants and activities.
FDIC requires member banks to undergo a new, detailed review process before launching any products on public blockchains.
FDIC requires member banks to pause all activities related to crypto assets, including the buying and selling of Bitcoin.