Fed Explores New Payment Accounts for Fintechs

The U.S. Federal Reserve is exploring a new type of limited payment account for certain financial firms, aiming to foster innovation while safeguarding the stability of the payment system. These accounts, distinct from traditional master accounts, would not earn interest, provide access to Fed credit, or have balance caps. This initiative reflects the Feds cautious approach to supporting emerging financial technologies without fully integrating less regulated entities into the core banking system.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.