Fed proposes accounts for fintechs day after Trump’s XO
Lisa Cook welcomes proposals, but Barr points to AML risks
The Federal Reserve has proposed setting up limited payment accounts for fintechs a day after US president Donald Trump issued an executive order asking the central bank to consider them.
In a statement on May 20, the Fed said the accounts would “support innovation” by allowing fintechs to move money on the Fed’s rails without offering the companies the same backstops available to banks. It said the payment account holders would not have access to intraday credit or the discount window, and they
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