"Federal Reserve Governor Christopher Waller says the central bank is entering a "new era" in payments - one that openly embraces decentralized finance (DeFi), distributed ledgers, and digital asset innovation as part of the mainstream financial system. Speaking Tuesday at the Fed's first-ever Payments Innovation Conference in Washington, Waller said the central bank intends to play an "active role" in the crypto revolution transforming the global payments landscape."
"Waller's sentiment is a pretty striking departure from the caution and skepticism that have long defined U.S. regulators' stance toward crypto. "The DeFi industry is not viewed with suspicion or scorn," Waller told attendees. "Rather, today, you are welcomed to the conversation on the future of payments in the United States - on our home field." According to Waller, distributed ledgers and crypto assets are now "woven into the fabric of the payment and financial systems.""
The Federal Reserve intends to integrate decentralized finance, distributed ledgers, and crypto assets into mainstream payment systems and pursue an active role in payments innovation. The Fed is studying models to connect emerging financial technologies with legacy banking infrastructure, including a prototype "payment account" framework and limited "skinny master accounts" to give legally eligible fintechs and payment firms direct settlement access to Federal Reserve payment rails. These accounts would not earn interest, would have balance caps, and would exclude overdraft privileges and discount window access. Market reaction included a rise in Bitcoin's price from around $108,000 to $110,321.
Read at Bitcoin Magazine
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