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

Odaily Odaily News: Anchorage Digital stated that the Federal Reserve's proposed payment account cannot replace the traditional master account. In a comment letter, Anchorage Digital expressed support for the Fed's efforts to modernize payment system access, but pointed out that the proposed account lacks FedACH access, has overnight balance limits, does not provide intraday liquidity, and pays no interest on reserves. It believes this is not a viable substitute for the master account that member national banks have held for over a century. Anchorage Digital also stated that the lack of FedACH access would force it to continue relying on intermediaries for daily payment settlements, and noted 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."