#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 and requires banks to undergo more stringent 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 appears to favor banks using private permissioned networks over public blockchains, as the decentralized and transparent nature of public blockchains could pose regulatory risks. 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 stringent 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 concerns about a bank's plan to launch a "bank digital deposit" program on a public blockchain, demanding the bank undergo a new, detailed review process before launching any product. The FDIC appears to favor banks using private permissioned networks over public blockchains, as the decentralized and transparent nature of public blockchains could pose regulatory risks. Additionally, the FDIC has requested member banks to cease implementing services related to buying and selling Bitcoin and has instructed member banks to "pause all activities related to crypto assets." These moves indicate that the FDIC remains cautious about cryptocurrencies and seeks to maintain tight control over banks' use of crypto 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 risks associated with 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 imposes strict review requirements for member banks using public blockchains for product development.
FDIC requires member banks to pause activities related to crypto assets, including buying and selling Bitcoin.