Anchorage Digital: Fed's Proposed Payment Account Can't Replace Traditional Master Account

Odaily Odaily News, Anchorage Digital stated that the Federal Reserve's proposed payment account cannot replace a traditional master account. In a comment letter, Anchorage Digital supported the Fed's efforts to modernize access to the payment system but noted that the proposed account lacks FedACH access, has overnight balance limits, does not provide intraday liquidity, and does not pay interest on reserves. It argued this is not a viable alternative to the master accounts that member banks have held for over a century. Anchorage Digital also indicated that the lack of FedACH access would force it to continue relying on intermediaries for daily payment settlements and pointed out that a streamlined master account should include interest on reserves. Last year, Fed Governor Christopher J. Waller proposed the concept of a "streamlined master account."