Wyoming is already positioning itself for the next significant evolution in the crypto space: consumer payments, according to a report by Tanaya Macheel for CNBC. The state is planning to launch its own U.S. dollar-backed stablecoin, named the Wyoming Stable Token, by the first quarter of 2025. This initiative aims to provide a faster and more cost-effective means of conducting transactions for both individuals and businesses while also generating a new revenue stream for the state, CNBC reported.
The Wyoming Stable Token, fully backed by U.S. short-term Treasurys, is expected to serve as a model for a potential federal digital dollar. Wyoming Governor Mark Gordon, speaking at the Wyoming Blockchain Symposium in Jackson Hole, emphasized the importance of a transparent and fully-backed stablecoin that can help stabilize the market by bringing debt onshore through Treasury-backed support, CNBC noted.
Governor Gordon highlighted the inevitability of digital assets in the future and criticized the federal government’s slow approach to this emerging technology. He pointed out that Wyoming, with its entrepreneurial spirit, is well-positioned to make significant strides in this area, CNBC stated. According to CNBC, the state has a history of pioneering business legislation, having created the LLC in 1977 and has passed over 30 pieces of crypto legislation since 2018 to create a favourable environment for crypto businesses and investors.
Wyoming is currently evaluating potential partners and vendors with the technical expertise needed to develop the stable token, CNBC noted. The process will require exchanges and wallet providers, such as Coinbase and Kraken, to facilitate the purchase and storage of the token. Once launched, the stablecoin could become a regular payment method for everyday purchases, such as buying coffee at a local shop in Jackson, Wyoming.
Additionally, the commission overseeing the stablecoin plans to invest the reserves backing the tokens in Treasurys and reverse repos, with the interest earned from these investments going toward funding public schools. Governor Gordon stressed the importance of prioritizing reserve management over profit-making to ensure the long-term success and stability of the stablecoin.
Per the report, to maintain parity with the U.S. dollar, the Wyoming Stable Token will include a buffer in its reserves to mitigate potential deviations, CNBC stated. Full transparency and regular public audits will be conducted to establish and maintain trust in the system.
CNBC says the Wyoming Stable Token is also seen as a response to the federal government’s reluctance to create a central bank digital currency (CBDC) and that while CBDCs have faced criticism over privacy concerns, Wyoming plans to use public blockchains like Ethereum or Solana, which offer greater transparency and security. CNBC that if this project is successful, it could pave the way for other assets, such as commodities and real estate, to be tokenized and integrated into blockchain platforms.
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