The Federal Reserve and retail payments: a historical review
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 12 February 2018
Abstract
Purpose
The purpose of this paper is to provide a comprehensive historical review of the role of the Federal Reserve in retail payments in the USA.
Design/methodology/approach
It reviews the literature on the role of the Federal Reserve and assessments of its involvement.
Findings
In addition to its oversight and operational role, the Federal Reserve has conducted R&D and facilitated technology adoption. It has provided effective competition to the private sector without subsidies.
Research limitations/implications
The Federal Reserve has served the public interest and private networks have benefited from the “visible hand” of government.
Practical implications
Migration to electronic payments will likely change its role from an operator to setting standards for safety and security.
Originality/value
The historical review provides context against which the future strategy of the Federal Reserve may be assessed.
Keywords
Acknowledgements
The author thanks the Lee Kuan Yew School of Public Policy, National University of Singapore for a research grant and Dr Lawrence Schembri and two anonymous reviewers for helpful comments and suggestions.
Citation
Lall, A. (2018), "The Federal Reserve and retail payments: a historical review", Journal of Financial Regulation and Compliance, Vol. 26 No. 1, pp. 58-71. https://doi.org/10.1108/JFRC-09-2016-0077
Publisher
:Emerald Publishing Limited
Copyright © 2018, Emerald Publishing Limited