The Federal Reserve introduces a new plan for limit-based payment accounts, enabling fintech companies to access more conveniently

【Crypto World】The Federal Reserve has recently taken new actions. On Friday, they announced that they are developing a new type of payment account scheme, planning to open it to some financial institutions.

This account design is quite interesting—institutions can use the Federal Reserve’s payment system for clearing and settlement, but access is strictly limited. In other words, you won’t receive the full benefits of a main account.

Specifically, these accounts have several features: they do not accrue interest, cannot access Federal Reserve credit support, and have a cap on the balance. Federal Reserve Board member Waller views this setup as a way to “support innovation” while maintaining the security bottom line of the payment system.

In fact, this idea is not new. Waller has been contemplating this since October last year. The background at that time was that the Federal Reserve wanted to find a balance—allowing fintech companies and similar institutions to more conveniently use Fed payment services, without granting “full authority” to those with lax regulation. The current scheme is a concrete implementation of this balancing approach.