Anchorage Digital says Fed’s limited payment account proposal is no real alternative

Anchorage Digital said the U.S. Federal Reserve’s proposal for a payment account that certain financial institutions could use only for payment processing is not a practical alternative to a master account, according to The Block. The crypto bank said it supports the Fed’s effort to broaden access to the payment system, but argued the framework would place Anchorage Digital and many other firms in a category subject to heightened review. Anchorage Digital added it is concerned those firms would be unable to use FedACH, the central bank-operated electronic payment network for banks and other financial institutions. If access to FedACH is blocked, the practical utility of a payment account would be limited, and account holders would still need to rely on intermediaries for routine payments and settlement, Anchorage Digital said.