Waller: "Fed considering introducing 'Payment Account' to give virtual asset firms access to payment network"

Christopher Waller (Christopher Waller), a member of the U.S. Federal Reserve (Fed), said, "Virtual assets (cryptocurrency) and distributed ledgers have now become part of the financial system," and stated that the central bank has entered a new phase of embracing cryptocurrency innovation.

According to The Block on the 21st (local time), Waller said at the Payments Innovation Conference, "The decentralized finance (DeFi) industry is no longer an object of suspicion or contempt," and "It has been officially invited to the discussion on the future of the U.S. payments system — something that would have been unthinkable just a few years ago," he said. He added, "Distributed ledgers and virtual assets are becoming increasingly entwined with the structure of payments and the financial system."

Waller is one of the seven Fed governors appointed by President Donald Trump during his first term in 2020, and his remarks show a stance clearly different from the Biden administration's skeptical attitude toward cryptocurrency.

He also proposed introducing a new type of account for payments innovation firms, the so-called 'Payment Account.' He said, "The goal is to allow legitimate institutions that currently have to process payments through third-party banks to use the Fed's payment services directly," and named the concept the 'Skinny Master Account.'

Unlike existing master accounts, the Skinny Master Account would limit interest payments on deposits and overdraft capabilities and would have a cap on account size. Waller said, "This account will allow access to the Fed's payment network while being designed to control risks to the central bank and the payments system," and explained, "To minimize the impact on the Fed's balance sheet, there will be no interest payments and a balance cap."