The US Federal Reserve is considering new “payment accounts” to grant fintech companies access to the Fed’s payment services, currently limited to large banks. Fed Governor Christopher J. Waller proposed the idea at the Payments Innovation Conference, aiming to integrate fintech and crypto into traditional finance. This move follows debanking challenges faced by many companies.
The collapse of crypto-friendly banks in 2023 led to allegations of “Operation Chokepoint 2.0,” where tech and crypto founders were denied banking access. Venture capitalist Nic Carter described it as a government effort to pressure banks into cutting ties with cryptocurrency firms. The move to grant access to smaller companies is seen as a positive development for the crypto industry.
The Federal Reserve has been experimenting with blockchain technology for payments and exploring tokenization, smart contracts, and AI for payment systems. Fed Governor Waller emphasized the importance of understanding payment system innovation to evaluate opportunities for upgrading payment infrastructures. These efforts align with the Fed’s goal to support technological advancements in payment services.

Read more at Cointelegraph: FED Mulls ‘Payment Accounts’ for Fintechs, Small Companies