Fed Explores New Payment Accounts for Fintech Innovation

The U.S. Federal Reserve is introducing payment accounts to simplify access to its payment systems for certain financial firms, particularly those using new technology. These accounts, a more limited version of master accounts, aim to support innovation without requiring full master account criteria. The Fed is seeking public input on setting up these accounts, offering a more accessible pathway to the Feds payment rails. These accounts will not pay interest or provide credit, and will have limits on funds held. This move signifies the Feds adaptation to evolving financial technology and payment methods.The Daily News Now! — Every city. Every story. AI-powered. Hosted on Acast. See acast.com/privacy for more information.