The Federal Reserve considers opening its payment system to non-bank institutions, sparking industry controversy

BlockBeats News, February 10, according to Decrypt, the United States Federal Reserve System is evaluating whether to grant limited payment account access to non-bank financial institutions, a move that has sparked intense debate between fintech companies and the traditional banking industry.

Organizations such as the US Financial Technology Association support the proposal, believing it will promote competition and innovation in the payments sector; however, institutions such as the Bank Policy Institute warn that this move could increase financial instability, especially in crypto-related businesses such as stablecoin issuance, which are similar to deposits but lack deposit insurance. This decision will have a significant impact on the boundaries between banks, fintech companies, and cryptocurrency enterprises within the US payments ecosystem.