PACE Act Aims to Modernize U.S. Payment Systems
- The PACE Act, introduced by U.S. Reps. Young Kim and Sam Liccardo, seeks to modernize payment infrastructure by granting nonbank firms direct access to Federal Reserve systems.
- The bill aims to reduce transaction fees and speed up payments by removing intermediaries that currently slow down processes.
- Industry groups, including the Blockchain Association, support the bill for potentially leveling the playing field for digital asset payment companies.
- The proposed legislation includes consumer protection measures such as requiring companies to back customer funds with liquid assets and prioritize customer fund recovery in case of insolvency.
- The PACE Act could bring U.S. payment systems in line with other major economies by enabling faster and cheaper transactions.
The PACE Act proposes a new federal registration framework overseen by the Office of the Comptroller of the Currency, allowing qualified firms direct access to Fed systems like FedNow, thus eliminating costly intermediaries.
By reducing bank fees and speeding up transactions, the PACE Act aims to improve financial efficiency for consumers and businesses alike, reflecting a growing consensus on updating outdated financial infrastructures in the U.S.
