Federal Reserve Plans to Introduce Streamlined Master Account Proposal by Year-End

The Federal Reserve is set to unveil its streamlined master account proposal by the end of the year, according to Federal Reserve Governor Christopher Waller. According to PANews, Waller made this announcement during an event hosted by the Center for Global Interdependence on Monday, expressing hope for the proposal's implementation by year-end. The traditional master account allows institutions direct access to the Federal Reserve's payment system, providing a direct channel for dollar currency supply. However, the proposed streamlined version will not offer interest on balances or loans through the discount window, among other restrictions. The consultation period for this proposal concluded last Friday, revealing a divide between cryptocurrency industry participants and community banks over whether non-traditional financial companies should have partial access to the U.S. payment systems. Waller emphasized the need to address these issues appropriately, stating, "We must resolve these matters properly, but if progress is smooth, I hope to complete this work by the end of the year."