#FDIC Restricts Banks from Using Ethereum#
Hot Topic Overview
Overview
The Federal Deposit Insurance Corporation (FDIC) has recently expressed caution towards banks using public blockchains like Ethereum, requiring them to undergo more stringent scrutiny before utilizing them. 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 be dissatisfied with banks opting for public blockchains over private permissioned networks, citing concerns about the risks associated with their decentralized and transparent nature. Furthermore, the FDIC has instructed member banks to halt all activities related to crypto assets, including the buying and selling of Bitcoin. This incident underscores the FDIC's cautious stance towards banks' involvement in the cryptocurrency space and its desire for stricter regulation.
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 communication records between the FDIC and member banks obtained by Coinbase through a Freedom of Information Act request, the FDIC has expressed concerns about banks using public blockchains instead of private permissioned networks. The FDIC believes that the decentralized and transparent nature of public blockchains could pose risks, such as data breaches and fraud. As a result, the FDIC requires banks to undergo a new detailed review process before launching any products on public blockchains. Additionally, the FDIC has also requested member banks to cease implementing services related to the buying and selling of Bitcoin and to pause all activities related to crypto assets. This event indicates that regulators remain cautious in their approach to cryptocurrencies and are concerned about the risks associated with banks using public blockchains.
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 thorough review process before launching related products.
FDIC may restrict member banks' activities related to crypto assets, including the buying and selling of Bitcoin.