Crypto and banks spar in comments on Fed’s ‘skinny master account’ idea

Crypto companies have backed a Federal Reserve proposal to give them limited access to the central bank, while banking associations have urged caution.

The Federal Reserve has heard arguments from crypto companies and banking associations on a proposal to allow so-called “skinny master accounts,” which would give fintech firms limited access to the central bank’s payments infrastructure.

The Fed received 44 comments in response to its proposal, which closed on Friday, seeking feedback on offering a “payment account,” with crypto companies backing the idea and banks urging caution.

In opening up comments on the proposal in December, Fed Governor Christopher Waller said the new payment accounts were needed due to “rapid developments” in payments and that they would “support innovation while keeping the payments system safe.” 

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