Crypto: Wyoming decided to launch its own stablecoin!
Land of bison, of Yellowstone National Park, Wyoming is also the promised land of Bitcoin and cryptocurrencies. While it already offers an ultra-favorable environment for the crypto universe, the state wants to go even further: by launching its own stablecoin.
A few days ago, 4 members of the Wyoming senate tabled a bill. The goal? The creation of a state stablecoin by the end of 2022. Let’s see together what this proposal raises.
Wyoming: The Most Crypto-Friendly State In The United States?
With this new project, the western state of the United States continues to compete for the place of the most cryptophilic state in the country of Uncle Sam. The state already today offers a legislative framework perfectly adapted to the development blockchain or crypto companies. Indeed, as early as 2020, Wyoming was the first American state to set up institutions capable of managing crypto and fiat currency deposits. In 2021, the state granted DAOs (decentralized autonomous organizations) the same rights as limited liability companies.
For many crypto companies, Wyoming represents a form of promised land. If the state is already recognized as a cryptophile, it seems to have decided to continue its momentum. And for that, the future could go through the launch of a stable coin. In any case, this is what has been on the agenda since last week, after the tabling of a bill by 4 state senators.
A Stablecoin: What For?
The motivations surrounding the project are still very elusive today. Moreover, the proposed bill does not set any specific objective for this stablecoin. For Wyoming, this project could be a way to continue to openly display itself as a cryptophile state, which would help create new economic benefits at the local level. And a little good publicity never hurt anyone!
Anyway, this stablecoin seems to raise a lot of questions in the United States. Like its conformity to the American constitution. Indeed, according to the US constitution, article I section 8 stipulates that “only Congress has the power to mint money and regulate its value”. For Chris Rothfuss, one of the 4 custodians of the bill, this parameter is not a problem because it is not a new currency but a tokenized dollar . Accordingly, the provision would not violate the US Constitution. An opinion not necessarily shared by everyone across the Atlantic.
The Terms Of The Launch Under The Magnifying Glass!
The bill provides for the launch of the stablecoin by the end of 2022. However, everything suggests that a launch in less than 10 months will be complex. Regarding the terms of pledging, the project around the state stablecoin would require the state treasury to keep in reserve as many dollars as the number of tokens issued.
Regarding the issue blockchain, Chris Rothfuss explains that no choice is made. The member of the senate believes that the state could use the Ethereum blockchain, Solana or another technology. He also specifies that ideally, the stablecoin should be able to operate on several blockchains. For the time being, it would seem that this question has been relegated to the background.