Fed Eyes New Account as Crypto Gets Closer to Payment System (1)

The Federal Reserve proposed a new payment account on Friday, amid a push from crypto and fintech firms for access to the central bank’s payment rails.

Under the plan, eligible firms could use the accounts for clearing and settling their payments. The regulator said the account would be distinct from a master account, which is a coveted system used by financial institutions to access payment services from the Fed.

“These new payment accounts would support innovation while keeping the payments system safe,” Fed Governor Christopher Waller said in a statement. Waller had previously touted a possible “skinny” master account ...