Quote from Emmanuel Awopetu on March 23, 2023, 5:20 AM

In this HBR article, we learn that to solve the uninsured creditor problem without distorting incentives for risk-taking, the U.S. should create a special class of bank called a “payment bank” that does nothing more than process payments. Their deposit bases would be large and potentially volatile, they would be very tightly regulated (even more so than money market funds), and they would be unable to take any credit or maturity risk. In short, they would take payroll deposits and other similar large B2B transactions and facilitate access to the payments system.