Federal Reserve to Embrace Payment Innovation, Says Board Member

According to Foresight News, during a Federal Reserve conference on cryptocurrency payment innovation, Federal Reserve Board Member Christopher Waller stated that the institution plans to become more proactive in exploring payment innovations. Waller emphasized the Federal Reserve's intention to actively participate in this revolution and highlighted the need for the institution to understand how best to integrate these innovations with the traditional financial ecosystem. Waller also mentioned that he has instructed central bank staff to explore the concept of 'payment accounts.' He described a potential prototype as a 'streamlined' master account that would provide access to the Federal Reserve's payment system. The Federal Reserve aims to better understand how to connect traditional finance with decentralized finance, innovative stablecoin applications, and the tokenization of financial products and services.