I believe that fostering a competitive environment is critically important for all portions of the retail payments system, including those in which the Federal Reserve is a participant. Indeed, the effectiveness of the U.S. retail payments systems can be credited largely to the competitive marketplace in which payments are provided.
The Federal Reserve promotes a competitive marketplace in part through innovations that enhance the cost effectiveness and quality of our services. An example of current initiatives we have underway that I think holds great potential is the use of web browser software to enable banks to communicate with the Federal Reserve to send and retrieve information.