Story perspectives

Federal Reserve Proposes New Payment Account Amid Concerns

12/20/2025

Summary

Story summary

The Federal Reserve Board is seeking public input on a proposed "payment account" for eligible financial institutions to foster innovation and safety.
The account will not pay interest, will not provide access to Fed credit, and will not change legal eligibility for services.
Christopher Waller, a Federal Reserve Governor, said final rule could be issued by end-2026.
Michael Barr, a Federal Reserve Governor, expressed concerns about safeguards against misuse amid the rise of nonbank firms.

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Story summary

The Federal Reserve Board is seeking public input on a proposed "payment account" for eligible financial institutions to foster innovation and safety.
The account will not pay interest, will not provide access to Fed credit, and will not change legal eligibility for services.
Christopher Waller, a Federal Reserve Governor, said final rule could be issued by end-2026.
Michael Barr, a Federal Reserve Governor, expressed concerns about safeguards against misuse amid the rise of nonbank firms.