#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. According to unredacted documents obtained by Coinbase, the FDIC appears to be unhappy with banks launching products on public blockchains and is requiring banks to undergo a new, detailed review process before using them. The FDIC believes that the decentralized and transparent nature of public blockchains could pose risks and recommends that banks use private permissioned networks instead. Additionally, the FDIC has instructed member banks to cease implementing services related to the buying and selling of Bitcoin and to pause all activities related to crypto assets. This event suggests that regulators remain cautious in their approach to cryptocurrencies and may be setting up barriers for banks to use public blockchain technology.
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 disapproval of a bank's plan to launch a "bank digital deposit" program on a public blockchain, demanding that the bank undergo a new, detailed review process before launching any products on public blockchains. The FDIC appears to favor banks using private permissioned networks over public blockchains, as the decentralized and permissionless nature of public blockchains could pose regulatory risks. 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 taking a cautious stance towards banks' involvement in the cryptocurrency space and seeks to impose stricter regulations on banks' use of public blockchains.
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 that using private permissioned networks is safer than public blockchains because they allow for controlled access and activity.
FDIC has raised concerns about banks using public blockchains for digital deposit schemes and has called for stricter scrutiny.
FDIC has instructed member banks to halt all activities related to crypto assets, including the buying and selling of Bitcoin.