Fed seeks input on account type attractive to crypto firms

The Federal Reserve is seeking public feedback on a new “payment account” which could give fintechs and crypto companies easier access to the central bank's systems.

The US Federal Reserve is requesting public input on its proposed “payment account,” dubbed a “skinny master account” which fintechs and crypto firms are drawn to as it would allow access to the central bank without needing the typical approvals. 

"These new payment accounts would support innovation while keeping the payments system safe," Fed Governor Christopher Waller said on Friday. In October, Waller recommended that the Fed explore the idea of implementing payment accounts to clear and settle certain transaction activities of eligible financial institutions.

Waller added the Fed is introducing the payment accounts feature to reflect the “rapid developments” in the payments industry that have led to “innovative approaches to banking” and new changes in business models.

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