Wyoming Explores State Stablecoin as Other States Consider Digital Currencies
Summary:
Wyoming is looking to hire a head for its Stable Token Commission, as the state continues its efforts to create its own stablecoin. The move comes as other states, like Texas, consider launching their own digital currencies. However, the idea of state stablecoins raises concerns about their impact on fiat money and the power of the Federal Reserve. The Wyoming Stable Token Act, passed into law in March 2023, defines the stable token as a digital representation of the US dollar held in trust by the state. Despite potential conflicts with the Federal Reserve, some experts believe there could be a compromise allowing states to issue stablecoins under a specific framework.
Wyoming has announced a job opening for the head of its Stable Token Commission, in its efforts to create its own stablecoin. This executive will be working with the governor, state auditor, state treasurer, and four expert appointees to bring Wyoming's stablecoin to life. Unlike Wyoming, Texas also proposed a similar initiative for a state-based digital currency backed by gold. However, the idea of state stablecoins raises questions about their impact on the stability of fiat money, the power of the Federal Reserve, and the interest of the public in a system with state-bank printed monetary notes. The Wyoming Stable Token Act, introduced in February 2022, defines the stable token as a virtual currency representing and redeemable for one US dollar held in trust by the state. The state attorney general is responsible for monitoring the token's issuance and freezing the project if it contradicts any federal or state law. The Stable Token Commission is set to provide a report on the feasibility of the stable token by November 1, 2023. Governor Mark Gordon initially vetoed the bill due to concerns about the readiness of Wyoming's Treasury, lack of information, costs, and the project's benefits. However, the bill was eventually passed into law without his signature. The potential conflict between state stablecoins and the Federal Reserve is a possibility, but there could be a compromise that allows for the issuance of stablecoins under a particular framework. Some believe that private stablecoins will also play a significant role in the future. Until a federal regulatory framework is established, states will continue to create their own rules to promote innovation and protect consumers in the crypto space.
Published At
9/14/2023 12:45:00 PM
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