American banks interested in utilizing public blockchain networks for customer services were reportedly dissuaded by the Federal Deposit Insurance Corporation (FDIC), as revealed in documents released on Friday. The FDIC's stance was unveiled through unredacted correspondences with member banks, obtained by cryptocurrency exchange Coinbase under the Freedom of Information Act (FOIA). The letters, previously heavily redacted, were made public following a court order. One letter from the FDIC's New York office to a member bank in March 2022 expressed concerns about the bank's plan to launch a 'Bank Digital Deposit' program on a public blockchain. The FDIC preferred private, permissioned networks over decentralized platforms like Ethereum and Solana. The regulator mandated a thorough review process for any products to be launched on public blockchains. Additional letters instructed banks to cease Bitcoin-related services, aligning with what Coinbase's Chief Legal Officer described as a broader crackdown on crypto activities by the Biden administration. Read more AI-generated news on: https://app.chaingpt.org/news