Federal Reserve News Today: Waller's Payments Conference – What's the Catch?

Generated Title: Waller's Fed Payments Innovation Conference: More Like a Fed Power Grab?

So, Waller's talking about "innovation" at a Fed conference, huh? Give me a break. Every time I hear a government official use that word, I reach for my wallet. It’s usually code for "we’re about to mess with something that was working just fine."

He wants the Fed to be an "active part" of this tech revolution in payments. Okay, but isn't the Fed already a massive part of the payments system? They literally are the rails. What exactly are they planning to "innovate"? Waller discussed the Fed's approach to these issues in his Opening remarks by Governor Waller at the Payments Innovation Conference - Federal Reserve Board (.gov).

A "Payment Account"—Sounds an Awful Lot Like Centralized Control

This "payment account" idea he's floating is particularly concerning. A Fed-controlled payment account for "legally eligible institutions"? Sounds like the Fed wants to be a gatekeeper, deciding who gets access to the financial system and who doesn't.

They say it's about "controlling risks." Of course, it is. It's always about "controlling risks." But who decides what those risks are? And what happens when the Fed's definition of "risk" conflicts with, oh, I don't know, actual innovation and competition?

No interest, balance caps, no overdrafts... It's like they're deliberately designing a system that's less attractive than what already exists. So, what's the point? Unless the point isn't about making things better, but about exerting more control.

And "engaging with stakeholders"? That's PR-speak for "we're going to pretend to listen to your concerns, then do whatever we were going to do anyway."

The Fed's "Hands-On Research": Are They Even Qualified?

The Fed’s doing “hands-on research” on tokenization, smart contracts, and AI? Seriously? Look, I'm not saying the Fed is staffed by idiots. But are they really the best people to be leading the charge on cutting-edge tech? These are the same people who can barely keep inflation under control.

I'm picturing a bunch of gray suits trying to wrap their heads around DeFi while actual DeFi developers are building the future in their garages. It's like watching your grandpa try to fix your iPhone.

And let's be real, the history of government-led tech initiatives isn't exactly stellar. Remember Healthcare.gov? Yeah, exactly.

The Fed says they've been facilitating payment efficiency "alongside the private sector" since forever. But "alongside" and "actively participating" are two very different things. One is supporting innovation; the other is potentially stifling it.

Maybe I'm just paranoid. Maybe the Fed really does have our best interests at heart. Maybe they're genuinely trying to foster innovation and create a better payments system for everyone.

Nah. I don't believe it for a second.

My Real Problem? The Arrogance

It ain't the tech itself that scares me, offcourse. It's the sheer arrogance of these institutions. The assumption that they know best, that they can centrally plan innovation, that they can control the future. It's the same kind of thinking that leads to every tech dystopia we've ever imagined. And honestly...

This Is How You Kill Innovation