Waller Touts Possible ‘Skinny’ Master Account for Some Firms (2)

Federal Reserve Governor Christopher Waller says the agency will be more active in studying ways to embrace innovative advancements in payments, including looking at a possible “skinny” master account for certain institutions.

“The revolution transforming payments is demanding change everywhere,” Waller said in prepared remarks for the Fed’s payments innovation conference in Washington.

Waller said he has asked the central bank’s staff to explore the idea of a “payment account,” which would aim to provide basic Fed payment services to eligible institutions that conduct payment services primarily through a third-party bank that has a full-fledged master account.

Waller added one ...