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

Odaily Planet Daily News Anchorage Digital stated that the Federal Reserve's proposed payment account cannot replace traditional master accounts. In a comment letter, Anchorage Digital supported the Fed's efforts to modernize payment system access, but pointed out that the proposed accounts lack FedACH access, have overnight balance limits, do not provide intraday liquidity, and do not pay reserve interest. It argued that they are not a viable alternative to the master accounts 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 streamlined master accounts should include reserve interest. Last year, Federal Reserve Board Governor Christopher J. Waller proposed the concept of a "streamlined master account."