Payments News

Fed must remain lead player in real-time payments

Jul 29, 2019

The heightened debate over what role, if any, the Federal Reserve should have in the future payments and settlement systems is vitally critical to the emergence of real-time payments. 

The discussion is notably reminiscent of the debate held more than 100 years ago in the aftermath of the financial panic of 1907 that triggered the creation of the Federal Reserve System. 

Similar to then, the Fed’s involvement should be seen as not only necessary, but vital to ensuring an open and ubiquitous payments system. Such a system should allow all eligible financial institutions — regardless of size, influence or location — to have equal access and pricing, not subject to the dictates and whims of a handful of Wall Street megabanks.

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