#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 letters obtained by Coinbase through a Freedom of Information Act request, the FDIC believes the decentralized and transparent nature of public blockchains poses risks, and recommends banks use private permissioned networks instead. Additionally, the FDIC has asked banks to pause services related to buying and selling Bitcoin. This move indicates that the FDIC remains cautious in its regulatory approach to cryptocurrencies, aiming to ensure safety and stability when banks use crypto technologies.
Ace Hot Topic Analysis
Analysis
The Federal Deposit Insurance Corporation (FDIC) is cautious about banks using public blockchains like Ethereum, requiring member banks to undergo more rigorous scrutiny before using them. 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, recommending banks use private permissioned networks instead. The FDIC argues that the complete openness of activities on public blockchains, beyond the control of third parties, could expose banks to security and privacy risks. Additionally, the FDIC has requested member banks to suspend services related to buying and selling Bitcoin and to review all activities related to crypto assets. This move indicates the FDIC's cautious approach to banks venturing into the cryptocurrency space, aiming to ensure banks can effectively manage risks when using crypto technologies.
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 transparent nature.
FDIC prefers member banks to use private permissioned networks, as they allow for control over participants and activities.
FDIC has introduced a new review process for member banks launching products on public blockchains and has requested member banks to pause activities related to crypto assets.
FDIC's stance may stem from concerns about the security, compliance, and regulatory risks associated with public blockchains.