The Federal Reserve is considering launching a streamlined payment account and opening its payment system to fintech firms

BlockBeats News, May 21st, the Federal Reserve proposed on Wednesday to introduce a new, more limited scope payment account that would allow fintech firms and other companies to make fund transfers through the Fed's payment system but without access to all the safeguards enjoyed by traditional banks.

The Fed stated in a release that the proposed account would not have access to daylight credit or the Fed's discount window, and reserves held at the Fed would not earn interest.

The proposal stems from the Fed's earlier work on a stripped-down account. The Fed is currently seeking to strike a balance between opening up its payments infrastructure to more firms and avoiding unnecessary risks to the financial system.