#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) has recently raised concerns about banks using public blockchains, such as Ethereum, and has imposed restrictions on banks using them. According to documents obtained by Coinbase through a Freedom of Information Act request, the FDIC believes that the decentralized and public nature of public blockchains poses risks and requires banks to undergo a new, detailed review process before launching any products on public blockchains. Additionally, the FDIC has instructed member banks to cease implementing services related to the buying and selling of Bitcoin and to suspend all activities related to crypto assets. This move indicates that the FDIC is cautious about banks using public blockchains and could have an impact on the development of the cryptocurrency industry.
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 stringent scrutiny before using them. According to documents obtained by Coinbase through a Freedom of Information Act request, the FDIC sent a letter to a member bank in March 2022 expressing concerns about the bank's plan to launch a "bank digital deposit" program on a public blockchain. The FDIC believes that the decentralized and permissionless nature of public blockchains would result in complete transparency of bank activities, beyond the control of third parties, which conflicts with the FDIC's regulatory objectives. In contrast, the FDIC prefers banks to use private permissioned networks, as these networks can control participants and activities. This stance by the FDIC indicates that its regulatory approach to cryptocurrencies and blockchain technology remains cautious, and it wants 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 discourages member banks from using public blockchains such as Ethereum, citing the risks associated with their decentralized and public nature.
FDIC prefers member banks to use private permissioned networks to ensure control and oversight of the network.
FDIC requires member banks to undergo a rigorous review process before using public blockchains.
FDIC requires member banks to pause activities related to crypto assets, including the buying and selling of Bitcoin.