#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 has issued warnings to member banks requiring them to 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, decentralized blockchains. This stance stems from concerns about transparency and security on public blockchains, as well as concerns about the risks banks may face by launching products on public blockchains. The FDIC has also asked 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 taking a cautious approach to banks using public blockchains like Ethereum, requiring member 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 would result in transparent transactions that cannot be controlled by third parties. 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." This series of actions indicates that the FDIC is wary of banks using crypto assets and public blockchains and desires stricter regulation of banks' operations in these areas.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The FDIC discourages member banks from using public blockchains, such as Ethereum, because they are decentralized and permissionless, meaning that activity is completely public and uncontrollable.
The FDIC prefers member banks to use private permissioned networks because they can control who can use them and for what purposes.
The FDIC has introduced a new detailed review process for banks launching products on public blockchains.
The FDIC has ordered member banks to cease implementing services related to the buying and selling of Bitcoin and to suspend all activities related to crypto assets.