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The US Federal Deposit Insurance Corporation (FDIC) is seeking new legal counsel to investigate and advise the agency on financial technology issues. The successful candidate will serve, among other functions, as an expert and resource for the FDIC on blockchain, smart contracts and related payment systems.
In its job posting, the agency said the position is in the technology and financial innovation group of its legal division. The position provides advice and assistance in relation to legal matters arising from digital technologies.
The successful candidate will serve as a recognized FDIC subject matter expert and resource in “blockchain, blockchain settlement systems, and distributed ledger development; smart contracts, utility settlement coins and, generally, payment and clearing and settlement systems.”
Other areas that the legal counsel will provide expert advice on include digital solutions targeting the bank’s customers, cloud computing and other cloud-based services, machine learning and artificial intelligence, consumer data privacy laws, and regtech.
The FDIC is a government agency that provides deposit insurance for US banks. It first became involved in the digital currency industry in March last year, when digital currency dealer SFOX announced it had partnered with MY Safra Bank of New York to offer state-insured bank accounts for traders. The partnership granted SFOX traders with FDIC insurance worth up to $ 250,000, an industry first at the time.
Since then, other service providers in the digital currency industry have managed to obtain FDIC insurance for their clients’ assets. Coinbase, for example, holds its clients’ funds in custody accounts with US banks which are themselves insured by the FDIC. Such accounts have FDIC pass-through insurance up to the per depositor coverage limit which is currently $ 250,000.
Although it insures some digital currency safekeeping accounts, the FDIC is not keen on digital currencies. FDIC President Jelena McWilliams said in the past: “There are some developments, such as cryptocurrencies, that have the potential to undermine a country’s entire central banking system.”
In the interview, McWilliams insisted that his agency would not discourage digital currency innovation. However, on the other hand, he revealed that he would not support digital currencies until he fully understood the implications for consumers.
See also: CoinGeek Live panel on Future of Digital Asset Security & Custody
New to Bitcoin? Check out CoinGeek Bitcoin for beginners section, the ultimate resource guide to learn more about Bitcoin, as originally intended by Satoshi Nakamoto, and blockchain.
