Federal Reserve Seeks Public Input on Special Purpose Payment Accounts

According to Odaily, the Federal Reserve is inviting public feedback on the establishment of special purpose payment accounts. These accounts are designed to grant eligible financial institutions, including cryptocurrency and fintech companies, direct access to the central bank's payment system for clearing and settlement operations. Federal Reserve Board member Christopher J. Waller stated that the new payment accounts will foster innovation while ensuring the security of the payment system. Unlike traditional general master accounts, these accounts will not pay interest, have no overdraft capabilities, and will have a balance limit. However, their approval process will be more streamlined. The comment period for this initiative is set for 45 days, aiming to address the evolution of payment methods and enhance system efficiency.