Change a few assumptions

Federal Reserve Provision of Retail Accounts

DIEGO ZULUAGA of Alt-M complains that the cost of provision is too high. But he included the whole transaction cycle, having the fed service the entire chain.  He then says that a private service provider should be licensed.

The Fed can do both. The Fed can establish the procedure for a Fed account, and issue card IDs, but let service providers provide the physical services.  But, in any event, it is moot. We will probably go ahead with stable coins and forget the whole mess.

The real conclusion.  It is not retail users who are becoming unbanked, it is the American fiat bankers who are getting locked out due to their fees. The private service providers simply becomes full service shadow banks.