Anchorage Digital: The Federal Reserve's proposed payment accounts cannot replace traditional master accounts

According to Odaily, Anchorage Digital stated that the Federal Reserve’s proposed payment accounts cannot replace traditional master accounts. In its comment letter, Anchorage Digital supported the Federal Reserve’s efforts to modernize access to the payment system, but pointed out that the proposed accounts lack access to FedACH, impose overnight balance limits, do not provide intraday liquidity, and do not pay interest on reserves. Therefore, these accounts are not a viable alternative to the master accounts held by member national banks for over a century. Anchorage Digital also noted that the lack of FedACH access would require continued reliance on intermediary institutions to complete daily payment settlements, and emphasized that streamlined master accounts should include interest on reserves. Last year, Federal Reserve Governor Christopher J. Waller introduced the concept of the “streamlined master account.”