#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. According to documents obtained by Coinbase through a Freedom of Information Act request, the FDIC believes the decentralized and transparent nature of public blockchains poses risks and encourages banks to use private permissioned networks instead. The FDIC also requires banks to suspend services related to buying and selling Bitcoin and to cease implementing activities related to crypto assets. This move has sparked concerns about the future of banks in the crypto space and reflects the regulatory body's cautious approach to the application of 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 views the decentralized and transparent nature of public blockchains as a risk, encouraging banks to use private permissioned networks instead. The FDIC specifically expressed displeasure with one bank's plan to launch a "bank digital deposit" program on a public blockchain, requiring the bank to undergo a new, detailed review process before launching any product. 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 by the FDIC indicate that regulators are taking a cautious approach to banks using cryptocurrencies and public blockchain technology, wanting 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 does not encourage member banks to use public blockchains such as Ethereum, believing that their decentralization and transparency pose risks.
FDIC believes that public blockchains lack control and oversight, which could lead to security and compliance issues.
FDIC prefers member banks to use private permissioned networks, which allow for better control and oversight.
FDIC is cautious about member banks using crypto assets and requires banks to conduct rigorous reviews before engaging in related activities.