Fed's Waller sees 'skinny' Fed payment accounts up and running by Q4 2026

 The idea behind Federal Reserve Governor Christopher Waller's proposed "skinny" Fed payment accounts is to tailor the account depending on a bank's needs, he said on Wednesday. He expects the new payment accounts to be "up and operational by Q4 2026."

"Nothing in (August's) speech changed eligibility," he clarified. "You have to be an eligible financial institution."  For example, a fintech startup wouldn't be eligible for those tailored accounts.

The Fed is proceeding with a comment period on the proposed accounts. Then it will produce rulemaking. In the meantime, the central bank is preparing technically for the new accounts.

10:33 AM ET: "I don't fear technology as an economist," he said. Rather, one has to understand it first to assess its risks and benefits.

Updated at 10:28 AM ET: Regarding stablecoins' use for payments, he said, "It's just technology. It's not evil."

"It's not clear to me that stablecoins" will have an extremely large footprint, but it will always be present as a competitive force, Waller said.

Developing...check for updates.

https://www.msn.com/en-us/money/markets/fed-s-waller-sees-skinny-fed-payment-accounts-up-and-running-by-q4-2026/ar-AA1QiGib