Wyoming Is Pushing Crypto Payments, Trying To Beat the Fed To a Digital Dollar

Wyoming is pioneering the next phase of crypto growth by creating its own U.S. dollar-backed stablecoin, the Wyoming stable token. The state aims for an early 2025 launch and have it serve as a model for a digitized dollar at the federal level, while also using the token’s reserves to fund public schools. CNBC reports: Wyoming is currently vetting potential partners and vendors with more tech expertise to help build the stable token. It will require an exchange and wallet providers — Coinbase and Kraken, for example, offer both — to purchase and hold the token. The state plans to issue the token to an exchange so the exchange can issue it to the retail user. From there, it should be just another payment method for everyday things, said Flavia Naves, a commissioner at the Wyoming Stable Token Commission. “When you walk into Cowboy Coffee in Jackson, Wyoming, and you want to buy your latte, there’s going to be their wallet there in Solana that you can use to buy your coffee with the Wyoming token,” she said, describing the vision for the stablecoin.

It also has a public good tilt to it: the commission plans to invest reserves that back each token in circulation into Treasurys and reverse repos, and use the interest made on those investments to fund its public schools. At the conference, [Wyoming Governor Mark Gordon] emphasized the importance of resisting the urge to focus too much on how much money the state can make here and to instead prioritize reserve management. […] Naves emphasized that there will be a “buffer” in the reserves to account for any potential deviations and full transparency to establish and maintain 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],” she said. “This is a public token as well so as with any public service, all the information is available.” The commission invites the public virtually to its meetings on the stable token and posts the minutes to its website afterward. “This is fully reserved and part of what we’ve been working out … is to make sure that we can fully back whatever it is we’re going to do,” Gordon said. “Plus the fact that our legislation says that when a person buys a Treasury or a repo, we’re going to have that in evidence, you’re going to be able to see that. So hopefully we can avoid the de begging issues.” Success would be “adoption of a stablecoin … that’s transparent, that is fully backed by our short-term Treasurys [and] that’s dollar dependent,” Wyoming Governor Mark Gordon told CNBC at the Wyoming Blockchain Symposium in Jackson Hole. “One of the big things for me is to be able to bring back onshore a lot of our debt, because if it’s bought by treasuries and supported by Treasurys, it will help to stabilize that market to a degree.”

“It is clear to me is that digital assets are going to have a future,” Gordon said. “The United States has to address this issue. Washington’s being a little bit stodgy, which is why Wyoming, being a nimble and entrepreneurial state, can make a difference.”