Fed Introduces New Account Model for Crypto Firms, Reviving ‘Narrow Banking’ Concept

The Federal Reserve (Fed) unveiled a new payment account model at its inaugural Payment Innovation Conference, granting limited access to stablecoin issuers and cryptocurrency companies. Fed Governor Christopher Waller proposed this initiative, allowing digital currency firms direct connections to the Fedwire and ACH systems without full master account privileges. This move focuses solely on payments and excludes interest-bearing deposits or emergency borrowing capabilities. 🎧