The U.S. Federal Reserve is pushing to introduce a "skinny master account" that would allow fintech firms to access the central bank payments network, deepening a clash between the crypto industry and banks, Cointelegraph reported on Sunday.

The Fed is reviewing a plan to let fintech firms make limited use of the central bank payments infrastructure. In response, the crypto industry supports it as innovation, while banks oppose it, citing financial stability.

Unlike the master accounts held by existing banks, the Fed's proposed "skinny master account" would not pay interest or provide access to Fed credit and would include balance limits. Circle and a blockchain payments consortium backed the plan, arguing it would "strengthen the U.S. payments system and reduce bank risks". Anchorage Digital Bank pointed to issues including overnight balance limits and a lack of access to the automated clearing house (ACH), and said improvements are needed.

The American Bankers Association opposed the plan, saying the firms "lack supervisory experience and may fail to meet federal safety standards". The Wisconsin Bankers Association said governance and risk management capabilities should be considered in addition to legal eligibility. Better Markets, a financial reform lobbying group, strongly criticised it as an "irresponsible favour" to the crypto industry.