Crypto-friendly Wyoming wants its own stablecoin

Competition among US states to become hubs for crypto and blockchain activities has increased significantly over the past year. Wyoming is one of the crypto-friendly states in the US, and it is now planning to launch its own stablecoin by the end of the year.

On Thursday, legislatures in the state proposed the Wyoming Stable Token Act (SF0106), paving the way for the state to become the first to launch a token pegged on the value of the US dollar.

Wyoming planning to launch a state stablecoin

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The bill has been proposed by senators Chris Rothfuss and Tara Nethercott. It will allow the treasurer of Wyoming to develop a state stablecoin whose value has been pegged to that of the US dollar.

If this bill is passed, the Wyoming state treasurer, Curtis Meier Jr, will be required to launch the stablecoin by the end of the year. If not, a report will be submitted by November 1 to determine why the launch of the state stablecoin will not be feasible.

This state stablecoin will function similarly to other popular stablecoins in the crypto market, such as Tether (USDT) and Circle’s USDC. Stablecoins are cryptocurrencies whose values are pegged to fiat currency. They are immune to market volatility, and they are mainly used as a store of value or on decentralized finance (DeFi) protocols.

Crypto environment in Wyoming

Wyoming is a crypto-friendly state. The purpose of this stablecoin has not been highlighted in the legislation. However, it could play a major role in enabling the state to push forward with its crypto plans. Wyoming was the first state in the US to issue a charter to a cryptocurrency bank. It also recognizes decentralized autonomous organizations (DAOs).

The CEO and founder of Avanti Bank and Trust in Wyoming, Caitlin Long, is sceptic over this stablecoin. In a tweet, she said that this proposal was a “mind-bender.” She noted many questions surrounding the initiative, and it would trigger conversation.

“It’s akin to a municipal bond that neither pays interest nor has a maturity date but is redeemable – except it isn’t exactly that because, as a token, there would be big legal and structural/settlement differences,” she said.