Federal Reserve Governor Christopher Waller says the central bank is entering a “new era” in payments — one that is openly embracing decentralized finance (DeFi), distributed ledgers, and digital asset innovation as part of the mainstream financial system.
He speaks Tuesday at the Federal Reserve’s first-ever meeting Payments Innovation Conference In Washington, Waller said the central bank intends to play an “active role” in the cryptocurrency revolution that is transforming the global payments landscape.
The conference is still ongoing, but Bitcoin price reaction was positive after a rough night. When the conference started, Bitcoin’s price was around $108,000 but has now jumped to $110,321 at the time of writing.
Waller’s sentiments are a striking departure from the caution and skepticism that have long characterized US regulators’ stance toward cryptocurrencies.
“The DeFi industry is not viewed with suspicion or disdain,” says Waller He said the audience. “Instead, today we welcome you to the conversation about the future of payments in the United States — back home.”
According to Waller, distributed ledgers and cryptoassets are now “woven into the fabric of payment and financial systems.”
He added that the Fed is considering new models for integrating emerging financial technologies with legacy banking infrastructure — including a potential prototype for a new “account payment” framework that would expand the central bank’s reach to innovators in this space.
A “skinny” main account.
Waller described the idea as a “skinny master account,” designed to give legally eligible institutions — particularly fintechs and digital asset-focused payment companies — limited but direct access to the Fed’s payment paths.
These accounts will not pay interest, will have maximum balance limits, and will exclude overdraft privileges or access to a debit window, but will allow payment-focused entities to settle transactions directly with the Fed rather than through partner banks.
“This payment account concept will aim to provide basic Federal Reserve payment services to legally qualified institutions that currently provide payment services primarily through a third-party bank,” Waller explained. “Innovation in payments is moving quickly, and the Fed needs to keep pace.”
From crypto-resistance to sharing
Waller’s tone toward cryptocurrencies marks a massive policy shift in Washington. Over the past year, the central bank has quietly withdrawn restrictive guidelines on cryptocurrency and stablecoin activity that had discouraged banks from participating in digital asset markets.
It also removed “reputational risk” considerations from its supervisory programs — a long-criticized tool that many in the industry said was used to justify breakups of cryptocurrency companies.
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