Federal Reserve Enters a ‘New Era’ in Payments, Waller Welcomes Crypto to the Table

Federal Reserve Governor Christopher Waller declared that the central bank is entering a "new era" in payments, signaling an open embrace of decentralized finance (DeFi), distributed ledgers, and digital asset innovation within the mainstream financial system. Speaking at the Fed’s first Payments Innovation Conference, Waller stated the Fed intends to play an active role in the crypto revolution, noting that distributed ledgers and crypto assets are now "woven into the fabric of the payment and financial systems." This marks a significant shift from previous regulatory skepticism. To facilitate integration, the Fed is studying a potential prototype for a “skinny master account,” which would grant legally eligible institutions, like fintechs, limited, direct access to the Fed’s payment rails for settling transactions without relying solely on partner banks. This account would have balance caps and exclude interest payments or overdraft privileges. Furthermore, the Fed has quietly withdrawn restrictive guidance on crypto and stablecoin activity that discouraged bank participation, including removing "reputational risk" considerations from supervisory programs.

(Source：Bitcoin Magazine)