Fed mulls 'skinny' payment accounts for fintechs, small companies

The US Federal Reserve is contemplating the introduction of ‘skinny’ payment accounts to facilitate greater access for smaller companies, particularly in the fintech and crypto sectors. Fed Governor Christopher J. Waller emphasized the need to support entities transforming the payment landscape at a recent conference. These new accounts would allow legally eligible institutions currently reliant on third-party banks for payment services to directly access the Fed's payment system, a privilege typically reserved for larger financial institutions. This initiative is viewed positively by industry participants as a means to alleviate the banking challenges faced by the crypto sector, which were notably detrimental during the prior administration. Moreover, Waller mentioned ongoing research into blockchain technology and AI for potential integration into the Fed's payment frameworks, marking a significant shift toward incorporating innovative financial technologies.

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