Fed mulls 'skinny' payment accounts to open rails for fintech, crypto firms

The US Federal Reserve is exploring the introduction of 'skinny' payment accounts aimed at enhancing access to its payment system for smaller fintech and crypto companies. This initiative is viewed as a potential remedy to the banking challenges faced by the crypto industry, particularly in light of past experiences where many firms were denied banking access. Fed Governor Christopher J. Waller indicated that these accounts would allow legally eligible institutions to access payment services directly, rather than through third-party banks. The proposed accounts aim to control risks while expanding the scope of who can utilize the Fed's payment rails. Waller’s comments suggest a shift towards recognizing the importance of integrating fintech innovations within the traditional finance system. This move comes as the Fed has already begun researching blockchain technology and digital payment methodologies, indicating that regulatory bodies are increasingly interested in the intersection of technology and finance.

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