Federal Reserve Proposes Limited Payment Accounts for Crypto Banks
- The Federal Reserve is seeking public comment on a new “payment account” plan for crypto and innovation-focused banks.
- These accounts would allow access to Fed payment rails but exclude interest, credit, or full master-account privileges.
- Fed Governor Christopher Waller, a candidate to replace outgoing Fed chair Jerome Powell, is spearheading the initiative.
- A public comment period will be open for the next 45 days to gather feedback on the proposal.
The Federal Reserve’s initiative aims to support innovation in the banking sector while maintaining system safety by introducing limited payment accounts for crypto banks. This move could significantly change how these banks operate nationally by granting them access to essential payment infrastructure.
While these accounts do not offer full privileges of master accounts, they represent a potential shift in the central bank’s approach towards digital assets and could lead to increased crypto banking activities in the U.S., as emphasized by Fed Governor Waller’s leadership in this initiative. Source
