Federal Reserve Considers Direct Accounts for Cryptocurrency Companies
- Fed explores integration between payments and cryptocurrencies
- Christopher Waller proposes simplified accounts at the Federal Reserve
- Ripple and DeFi Gain Ground in the US Financial System
Federal Reserve Governor Christopher Waller opened the central bank's first-ever payments innovation conference by highlighting the importance of innovations from the cryptocurrency sector. During his opening remarks, he stated that the Fed intends to adapt to technological transformations and embrace the changes brought about by new financial models.
"My vision for the Fed, from now on, is to embrace disruption, not avoid it," Waller said, adding that the Federal Reserve wants to become an active part of the advancement of financial technologies and cryptocurrencies.
Among the event's main topics, Waller proposed a new structure called a "payment account," a lighter version of the Fed's traditional master accounts, which give financial institutions direct access to U.S. payment systems. This initiative, he said, could allow fintechs and cryptocurrency companies to operate with greater independence and security, without relying on intermediary banks.
These simplified accounts, according to Waller, would offer access to the Federal Reserve's payment rails, but with strict risk controls and balance limits. They could, for example, pay no interest or allow access to credit through discount windows, reducing the impact on the central bank's balance sheet. The governor stated that the Fed staff is studying the proposal and that the industry will hear more details soon.
Even without holding the position of Vice President of Supervision, Waller has stood out as a voice in favor of innovations in decentralized finance (DeFi). He previously participated in DC Fintech Week, where he praised the transformative potential of blockchain-based technologies.
During the same event, Ripple CEO Brad Garlinghouse criticized Wall Street banks' resistance to opening master accounts for companies in the sector, stressing that direct access to the payments system would be essential to integrating cryptocurrencies into the US financial system.
Waller concluded his speech by noting that the Federal Reserve recognizes the role of decentralized technologies: "This conference represents the recognition that distributed ledgers and cryptoassets are becoming part of the fabric of the financial and payments system."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CoreWeave, the "Eye of the Storm" in the Latest AI Crash amid "Double Blow to Stocks and Bonds"
CoreWeave's stock price plummeted 25% in a single week, with junk bond yields soaring to 15% and the default probability exceeding 60%, triggering a financing crisis in AI infrastructure. This "double whammy" in both stocks and bonds has led to an 11% drop in the Philadelphia Semiconductor Index and the Nasdaq 100 experiencing its worst weekly performance of the year. Market participants warn that this marks a turning point in AI hype credit pricing—the high-leverage, heavy-debt expansion model is now facing a severe test amid elevated interest rates.
Japan taps Chainlink’s CCIP to accelerate tokenization — Details
Bank of America’s Hartnett, who accurately predicted major declines: “Sell signal” is over, investors will "return to tech stocks in mid-November”, the key lies in “chip prices”
Bank of America’s “sell signal” has ended, but this is by no means a call to bottom fish. Currently, the AI financing gap is widening, and technology stocks are extremely crowded. Strategists warn that the key to whether technology stocks can rebound in November depends entirely on “semiconductor prices.” In the short term, it is advised to avoid technology stocks, maintain a defensive stance, and position in small caps and REITs.
Crypto prices
More
