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Bitcoin Peace, the largest cryptocurrency trading platform based in the United States, has supported the Federal Reserve’s proposal to give non-bank financial institutions access to specialized payment accounts.
The San Francisco-based platform sent a letter to the central bank of the United States calling for special payment accounts at the Federal Reserve Bank, stating that these accounts are necessary to modernize the country’s domestic financial infrastructure.
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Bitcoin Peace stated that the proposal would be granted Fintech companies and native cryptocurrency companies Direct access to Federal Reserve Payments Network.
This change will allow these entities to use the basic “plumbing” of the global economy without needing a full commercial bank card.
currently, A must for most companies working in the cryptocurrency space They rely on intermediary banks to settle dollar transactions, which adds cost, delay time and risks associated with the counterparty to these services.
Reducing reliance on FDIC-insured partner banks as intermediaries for core payment functions will allow accounting institutions to provide safe and efficient services to US consumers and businesses, while reducing costs and ensuring that emerging payment service providers can scale with growing demand, Bitcoin Peace said. Suspension of the platform.
Similar access is already available in the UK, EU, Brazil and India, said Faryar Sherzad, senior policy director at Bitcoin Peace.
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Shirzad explained that these jurisdictions have witnessed accelerated competition and reduced establishment risks, which has helped their financial sectors to maintain global competition.
However, the cryptocurrency giant warns that the current framework risks “immediate death” due to too strict restrictions.
Bitcoin Peace stated that the Federal Reserve’s current proposal includes “unnecessarily restrictive” restrictions. He warned that these limitations could ultimately undermine the effectiveness of the account for large-scale operations.
The platform stated that the combination of all the proposed restrictions exposes the account to the risk of being excessively limited in a way that may limit its adoption by eligible organizations for its intended use.
The platform was particularly critical of not paying interest on end-of-day balances and imposing minimum limits on overnight balances.
Bitcoin Peace urged the regulators to reconsider the “flawed” logic associated with the budget limits, and the platform noted that the risks in payment services are mainly operational and not credit.
The risks associated with processing payments are operational risks and not credit, market or liquidity risks of the kind that generally require a capital buffer based on balance sheet size, the company wrote. Therefore, the budget measure is not considered suitable for this purpose.
The company also recommended that customers could maintain “blanket” balances. Brian Armstrong said such steps would allow companies to pool user funds to enable more efficient settlement.
Calling for a “simplified framework” that ensures commercial viability, Coinbase seeks to position itself as a systemic player that seeks to move from the margins of the financial system to its regulated center.
