Fed Governor Wants to Give Crypto Firms Access to Central Bank Payment Infrastructure

Federal Reserve Governor Christopher Waller, speaking at the Fed’s first-ever Conference on Payments Innovation, said that the central bank must “embrace change” amid the rise of digital assets and decentralized finance (DeFi).

Waller proposed creating a “simplified” or limited version of a Fed master account that could grant crypto and fintech firms direct, though restricted, access to the U.S. payment systems.

These proposed accounts would differ from traditional master accounts in several ways:
they would not accrue interest, allow intraday overdrafts, or provide access to the Fed’s discount window. Instead, they would offer limited access with capped balances.

Historically, master accounts, which enable direct settlement with the central bank, have been available only to federally licensed banks, while nonbank entities have faced strict scrutiny. Under the current three-tiered Fed review system, high-risk institutions such as crypto firms undergo the most rigorous oversight.

Waller’s proposal represents a shift away from that framework, potentially helping the Fed maintain its competitiveness in a rapidly evolving financial landscape.

For fintech companies and stablecoin issuers, such a “payment account” could bridge the gap between innovation and regulation, providing limited but crucial access to the U.S. financial core.

See also: "BitMine Dares to Buy Ethereum at Its Local Bottom"

#Fed #Crypto Assets

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