#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 banks to undergo more rigorous scrutiny before using them. The FDIC believes the decentralized and transparent nature of public blockchains poses risks, favoring banks using private permissioned networks. This stance stems from extensive unredacted crypto-related communications between the FDIC and its member banks, including a letter sent by the FDIC to a member bank in March 2022, detailing the FDIC's concerns about the bank's plan to launch a "bank digital deposit" program on a public blockchain. Additionally, the FDIC has requested 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."
Ace Hot Topic Analysis
Analysis
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 stems 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 views the decentralized and transparent nature of public blockchains as a risk, favoring banks to use private permissioned networks instead. The FDIC even instructed member banks to pause all activities related to crypto assets, including buying and selling Bitcoin. This move indicates that the FDIC is taking a conservative approach to banks' involvement in the crypto space and desires stricter oversight of 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 public nature.
FDIC prefers member banks to use private permissioned networks, as they offer greater control.
FDIC has introduced a new review process for member banks launching products on public blockchains and has requested that member banks pause activities related to crypto assets.
FDIC's stance may stem from concerns about the security, transparency, and regulatory compliance of public blockchains.