Fed's Kohn on evolution of retail payments
In a speech prepared to be delivered at a payments symposium in Las Vegas, Kohn said that if the payments system continues to evolve per expectations "it is possible that in the next 10 to 20 years the Reserve Banks will accept only checks that are deposited electronically and that can be presented electronically."
"Any remaining paper checks may have to be cleared through other channels," Kohn added.
"As we move into a more steady-state electronic check environment, the Federal Reserve may find it appropriate once again to review its longer-term operational role in the retail payments system," Kohn said.
"Clearly, at that time, the Federal Reserve's national reach will no longer be a compelling reason for its operational role," Kohn added.
Speech by Federal Reserve Vice Chairman Donald L. Kohn at the Western Payments Alliance 2006 Payments Symposium, Las Vegas, Nevada, September 11, 2006.
Click here to read the speech "Evolution of retail payments and the role of the Federal Reserve"
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