FDIC Eyes Banks’ Cryptocurrency Plans

The Federal Deposit Insurance Corporation (FDIC) will request information from banks under its supervision about cryptocurrency-related operations and plans. The agency’s chair, Elena McWilliams, said.

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At an online conference of the Federalist Society, McWilliams said that more and more financial institutions in the United States are dealing with digital assets. The regulator intends to request information from them to understand its role in this space.

“The FDIC is closely watching developments. We want to learn more about banks’ activities and plans to understand what and under what circumstances we should act. To this end, we plan to issue a request for information,” McWilliams clarified.

She said that, amid the COVID-19 pandemic, fintech firms have penetrated deeper into the banking sector. The FDIC expects them to cooperate with banking institutions.

McWilliams also highlighted China’s digital yuan project. She estimated that the number of users of the instrument could reach one billion, adding that it would enable China to settle payments outside systems tied to the US dollar.

In December 2020, the US Congress introduced a bill to obtain licenses from the FDIC and other regulators.

Earlier, the agency opened a vacancy for a legal counsel with experience in the blockchain space.

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