- Wyoming’s new stablecoin could challenge Bitcoin and Tether by offering a transparent, fully-backed digital currency.
- This initiative positions Wyoming as a leader in U.S. digital currency innovation, potentially setting the stage for a federal digitized dollar.
Following a recent update by CNF on Wyoming legally approving CryptoFED DAO to operate as a legal entity in the US, Wyoming is taking a significant step in crypto growth by developing its own U.S. dollar-backed stablecoin, according to CNBC.
The Wyoming stable token is set to launch in early 2025. The initiative aims to facilitate faster, cheaper transactions and create a new revenue stream for the state. Governor Mark Gordon emphasized the importance of transparency, stating:
Success would be the adoption of a stablecoin… that’s transparent, that is fully backed by our short-term Treasurys [and]that’s dollar-dependent.
Wyoming’s Stablecoin: A Blueprint for a Federal Digital Dollar
This stablecoin could serve as a model for a federal digitized dollar, reflecting Wyoming’s history of pioneering business law.
Wyoming is currently evaluating partners to develop the stable token, which will be used for everyday payments through exchanges. The project prioritizes the public good, with reserves invested in Treasurys and reverse repos to fund public schools. Flavia Naves, a commissioner at the Wyoming Stable Token Commission, highlighted the focus on public trust:
There will be audits available to the public on how many tokens [are]in circulation [and]how much money is in the bank account backing, so you can always see there is a 1-to-1 [stablecoin-to-dollar ratio].
The state’s move is also a response to the Federal Reserve’s hesitation to create a central bank digital currency, positioning Wyoming at the forefront of digital currency innovation. This initiative is also integrated with educational institution involvement. For example, as CNF previously reported, The University of Wyoming would launch the first Bitcoin Research Institute in August, directed by Bitcoin activist Bradley Rettler.
At the time of writing, Bitcoin (BTC) is trading at $64,104.46, with a decline of 0.12% in the past day and a surge of 9.35% in the past week.
