#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 called for stricter scrutiny before banks can use them. According to communication records between the FDIC and member banks obtained by Coinbase through a Freedom of Information Act request, the FDIC believes that the decentralized and transparent nature of public blockchains poses risks and encourages banks to use private permissioned networks. The FDIC has also asked member banks to cease implementing services related to buying and selling Bitcoin and has even asked some banks to suspend all activities related to crypto assets. This event indicates that the FDIC is cautious about banks' involvement in the cryptocurrency space and could have an impact on the future development of banks' use of blockchain technology.
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 appears to favor banks using private permissioned networks over public blockchains, as the decentralized and permissionless nature of public blockchains would result in transactions being publicly transparent and beyond the control of third parties. The FDIC believes that launching products on public blockchains requires a more stringent review process and has asked member banks to pause activities related to crypto assets, including buying and selling Bitcoin. This incident suggests that the FDIC remains cautious about banks using public blockchain technology and wants to ensure that banks can effectively manage risks when using these technologies.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains like Ethereum, citing risks associated with their decentralized and transparent nature.
FDIC believes private permissioned networks are more secure than public blockchains because they can control access and activity.
FDIC expresses concerns about banks using public blockchains for digital deposits and requires banks to conduct more rigorous reviews.
FDIC requires member banks to pause activities related to crypto assets, including buying and selling Bitcoin.