#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 stringent scrutiny before doing so. This news comes from communication records between the FDIC and member banks obtained by Coinbase through a Freedom of Information Act request. 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 instructed member banks to cease implementing services related to buying and selling Bitcoin and to pause all activities related to crypto assets.
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. According to unredacted documents obtained by Coinbase through a Freedom of Information Act request, the FDIC expressed concerns about a bank's plan to launch a "bank digital deposit" program on a public blockchain and required the bank to 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 permissionless nature of public blockchains would result in activities being completely public and unable to be overridden by third-party human administrators. Additionally, the FDIC has required member banks to cease implementing services related to the buying and selling of Bitcoin and has instructed member banks to "pause all activities related to crypto assets." These actions indicate the FDIC's concerns about banks using cryptocurrencies and public blockchains and its desire for stricter regulation.
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 their decentralized and permissionless nature.
FDIC believes that the transparency of public blockchains could expose sensitive bank information, and therefore requires banks to use private permissioned networks.
FDIC requires banks to undergo a new, detailed review process before launching any products on public blockchains.
FDIC requires member banks to cease implementing services related to the buying and selling of Bitcoin and to suspend all activities related to crypto assets.