#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. This news stems 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 FDIC appears to favor banks using private permissioned networks over public blockchains, as the decentralized and transparent nature of public blockchains could pose regulatory risks. The FDIC also requires member banks to pause services related to buying and selling Bitcoin and to cease implementing activities related to crypto assets.
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 rigorous 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. One letter reveals the FDIC's disapproval of a bank's plan to launch a "bank digital deposit" program on a public blockchain, demanding the bank undergo a new, detailed review process before launching any product. The FDIC appears to favor banks using private permissioned networks over public blockchains, as the decentralized and permissionless nature of public blockchains would result in complete transparency of activity, while private blockchain networks can control who uses them and for what purpose. Additionally, the FDIC has requested that member banks cease implementing services related to buying and selling Bitcoin and has instructed member banks to "pause all activities related to crypto assets." These moves indicate the FDIC's cautious stance on the risks associated with banks using crypto assets and public blockchains, and its desire to impose stricter oversight on banks' crypto-related activities.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
FDIC discourages member banks from using public blockchains like Ethereum, citing their decentralized and public nature as risks.
FDIC prefers member banks to use private permissioned networks, as they offer greater control.
FDIC has established a rigorous review process for member banks launching products on public blockchains.
FDIC may require member banks to cease activities related to crypto assets, including buying and selling Bitcoin.