#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 a trove of 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, encouraging banks to use private permissioned networks instead. The FDIC also requested that member banks pause services related to Bitcoin buying and selling and cease implementing activities related to crypto assets. This move indicates that the FDIC is wary of banks venturing into the cryptocurrency space and desires stricter oversight of their crypto activities.
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 Freedom of Information Act documents obtained by Coinbase, the FDIC believes the decentralized and transparent nature of public blockchains could pose risks and recommends banks use private permissioned networks. In a March 2022 letter, the FDIC explicitly stated that a bank must undergo a new, detailed review process before launching a "bank digital deposit" program on a public blockchain. Additionally, the FDIC has asked member banks to 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 the FDIC's cautious stance on banks using crypto assets and public blockchains and its desire for stricter regulation of these activities.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains like Ethereum, arguing that the decentralized and transparent nature of public blockchains poses risks.
FDIC believes that private permissioned networks are more secure than public blockchains because they can control who can use them and for what purposes.
FDIC requires banks using public blockchains to undergo a new, detailed review process and may prevent banks from implementing services related to buying and selling Bitcoin.
FDIC may impose stricter regulations on banks using public blockchains and may require banks to suspend all activities related to crypto assets.