Federal Reserve moves toward narrower, crypto-driven take on master accounts

The U.S. Federal Reserve has initiated a process to establish a more limited version of its master accounts, termed "payment accounts," designed to grant firms easier access to the central bank's payment rails for clearing and settling payment activity without the stringent requirements of full master accounts. Governor Christopher Waller supported this move, suggesting these accounts would foster innovation while maintaining safety, noting they would not pay interest, offer Fed credit, or have balance caps. However, Governor Michael Barr opposed the request, citing insufficient specificity regarding safeguards against the accounts being used for money laundering and terrorist financing by unsupervised institutions. The Fed is requesting information on how to structure these accounts, opening a 45-day public comment window.

(Source：CoinDesk)