Nellie Liang, the U.S. Treasury Department's under secretary for domestic finance, emphasized the urgent need for a federal regulatory framework for nonbank payment service providers during her speech at the Chicago Payments Symposium. She highlighted that the current state-based regulatory model is outdated, failing to keep pace with the rapid evolution of payment systems and new forms of money. This outdated approach not only poses risks to the integrity of payment systems but also creates barriers to entry that stifle competition and innovation. Liang proposed a modern framework that includes essential elements such as financial resource requirements, risk management standards, and restrictions on activities and affiliations for eMoney issuers. These measures aim to protect consumers, enhance trust in the payment system, and promote a competitive landscape. Additionally, she referenced the Treasury's 2022 report on the future of money, which discusses potential innovations like central bank digital currencies and improvements in cross-border payment efficiency.
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