#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
Recently, the Federal Deposit Insurance Corporation (FDIC) has raised concerns about banks using public blockchains, such as Ethereum, and has imposed restrictions on member banks' use of public blockchains. According to disclosed letters, the FDIC believes that the decentralized and transparent nature of public blockchains poses risks and has required banks to undergo more stringent scrutiny before using them. Additionally, the FDIC has instructed member banks to suspend services related to Bitcoin buying and selling and to cease all activities related to crypto assets. This move indicates that the FDIC is cautious about cryptocurrencies and blockchain technology and could hinder banks' innovation and development in this area.
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum and has raised concerns about member banks launching products on public blockchains. According to communication records between the FDIC and member banks obtained by Coinbase through a Freedom of Information Act request, the FDIC believes the decentralized and transparent nature of public blockchains poses risks and has required banks to undergo a new, detailed review process before launching any products on public blockchains. The FDIC appears to favor banks using private permissioned networks, as these networks allow for controlled access and activity. Additionally, the FDIC has requested that member banks cease implementing services related to the buying and selling of Bitcoin and has instructed member banks to "pause all activities related to crypto assets." These actions suggest that the FDIC is cautious about banks' involvement in the cryptocurrency space and wants to impose stricter regulations on 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 raised concerns about member banks using public blockchains for digital deposit schemes, demanding stricter scrutiny.
FDIC has instructed member banks to halt activities related to crypto assets, including buying and selling Bitcoin.