The post U.S. Fed to ‘Embrace Disruption,’ Pitches ‘Skinny’ Master Account Idea appeared on BitcoinEthereumNews.com. U.S. Federal Reserve Gov. Christopher Waller kicked off the central bank’s first payments-innovation conference by vowing the Fed will embrace the crypto sector’s innovations and saying he’s asked staff to explore a lighter version of the so-called “master accounts” that give financial firms access to U.S. payment rails. “My view from the Fed from now on is embrace the disruption, don’t avoid it,” Waller said to open the Tuesday event. “The Fed intends to be an active part of that revolution.” Waller, who is one of the governors on the seven-member Fed board, is reportedly among President Donald Trump’s potential top candidates to replace Fed Chair Jerome Powell when Powell’s term is up next year. He said he suggested Tuesday’s payment conference in order to get the new crypto-world innovators in the same room as the traditional payments-infrastructure incumbents. “I believe we can and should do more to support those actively transforming the payment system,” he said. “To that end, I have asked Federal Reserve staff to explore the idea of what I’m calling a payment account.” He described the idea as a “skinny” version of the full-fledged master accounts, allowing new entrants to payments a way to avoid the need for third-party relationships with institutions that have the full accounts. He suggested the lighter payment accounts “would provide access to the Federal Reserve payment rails, while controlling for various risks the Federal Reserve and the payment system to control the size of the accounts and associated impacts on the Fed’s balance sheet.” They may not, for instance, pay interest on balances, come with daylight overdraft privileges or grant access to borrowing through the Fed’s so-called “discount window,” and they may come with balance caps. Waller said the Fed would gather input on the idea, and the industry will hear… The post U.S. Fed to ‘Embrace Disruption,’ Pitches ‘Skinny’ Master Account Idea appeared on BitcoinEthereumNews.com. U.S. Federal Reserve Gov. Christopher Waller kicked off the central bank’s first payments-innovation conference by vowing the Fed will embrace the crypto sector’s innovations and saying he’s asked staff to explore a lighter version of the so-called “master accounts” that give financial firms access to U.S. payment rails. “My view from the Fed from now on is embrace the disruption, don’t avoid it,” Waller said to open the Tuesday event. “The Fed intends to be an active part of that revolution.” Waller, who is one of the governors on the seven-member Fed board, is reportedly among President Donald Trump’s potential top candidates to replace Fed Chair Jerome Powell when Powell’s term is up next year. He said he suggested Tuesday’s payment conference in order to get the new crypto-world innovators in the same room as the traditional payments-infrastructure incumbents. “I believe we can and should do more to support those actively transforming the payment system,” he said. “To that end, I have asked Federal Reserve staff to explore the idea of what I’m calling a payment account.” He described the idea as a “skinny” version of the full-fledged master accounts, allowing new entrants to payments a way to avoid the need for third-party relationships with institutions that have the full accounts. He suggested the lighter payment accounts “would provide access to the Federal Reserve payment rails, while controlling for various risks the Federal Reserve and the payment system to control the size of the accounts and associated impacts on the Fed’s balance sheet.” They may not, for instance, pay interest on balances, come with daylight overdraft privileges or grant access to borrowing through the Fed’s so-called “discount window,” and they may come with balance caps. Waller said the Fed would gather input on the idea, and the industry will hear…