#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 expressed dissatisfaction with banks using public blockchains for digital deposit services. According to communication documents between the FDIC and member banks obtained by Coinbase through the Freedom of Information Act, the FDIC believes that the decentralization and transparency of public blockchains pose risks and requires banks to undergo more stringent scrutiny before using them. Additionally, the FDIC has requested that member banks cease implementing services related to Bitcoin buying and selling and suspend all activities related to crypto assets.
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 appears to favor banks using private permissioned networks over public blockchains, as the decentralized and permissionless nature of public blockchains means all transactions are publicly transparent and cannot be controlled by third parties. The FDIC believes that the transparency and uncontrollability of public blockchains could pose risks to bank security and stability. Additionally, the FDIC has also required member banks to cease services related to the buying and selling of Bitcoin and has instructed member banks to "suspend all activities related to crypto assets." These actions indicate that the FDIC is cautious about cryptocurrencies and blockchain technology and wants to gain a deeper understanding and assessment before banks use 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, believing they offer greater control.
FDIC scrutinizes member banks' use of public blockchains, requiring banks to undergo a new, detailed review process before launching any products.
FDIC requires member banks to cease implementing services related to the buying and selling of Bitcoin and to suspend all activities related to crypto assets.