The U.S. Federal Reserve has announced plans to explore new “payment accounts” that would let crypto and fintech companies connect directly to the Fed’s payment system.
Fed Governor Christopher Waller outlined the development during his speech at the Payments Innovation Conference today. He said this is “a new era”, showing the Fed is moving from being cautious to working together with crypto and DeFi innovators.
Federal Reserve Governor Says DeFi and Crypto Are “Welcome to the Conversation”
Specifically, Governor Waller stated that the DeFi sector no longer faces suspicion or scorn. Instead, the financial industry has now welcomed it into discussions about the future of payments in the United States.
“Today, you are welcome to the conversation on the future of payments in the United States,” he said.
Waller also noted that technologies like distributed ledgers, stablecoins, and tokenized assets now make up important parts of the financial system. The companies working in these areas include banks, asset managers, payment firms, tech companies, and crypto-focused fintechs.
According to him, this shows that distributed ledgers and crypto-assets are no longer just on the edges but key parts of payment and financial systems.
The Proposed “Payment Account”
Notably, the proposed “payment account” concept would be a simpler version of the Fed’s regular master account for companies that focus on payment innovation.
These “skinny” accounts would let certain crypto and fintech firms connect directly to the Fed’s payment system without needing a middleman bank.
What the ‘Payment Account’ Would Offer
Waller described a prototype version of the account that would:
- Provide access to Fed payment rails
- Have no interest paid on balances
- Include balance caps to control exposure
- Reject payments if the account hits zero (no overdrafts)
- Exclude access to discount window borrowing
He explained that the new account setup seeks to fit the changing payments world and to give innovators quicker access, while keeping the Federal Reserve system safe and stable.
Furthermore, the Fed Governor said these lower-risk payment accounts will have a faster review process because payment technology moves fast, and the Fed needs to keep up.
Turning Point for Crypto and Fintech
Indeed, this announcement is a major sign that the Fed is preparing to integrate the crypto sector into the U.S. payments infrastructure.
It also aligns with the Fed’s ongoing research on tokenization, smart contracts, and how AI connects with payments, which Waller said is already happening.
Federal Reserve staff will now engage with industry participants, regulators, and stakeholders to evaluate the benefits and potential risks of the proposed payment account model.
“You will be hearing more about this shortly,” Waller concluded.
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