Wyoming is looking to hire a head for its Stable Token Commission to develop the state’s own stablecoin. This move comes after the introduction of a similar initiative in Texas, where lawmakers proposed bills for a state-based digital currency backed by gold. The idea of state stablecoins raises questions about their impact on fiat money and the power of the Federal Reserve, as well as whether people want to return to a system with state banks printing their own money.
The Wyoming Stable Token Act defines the state’s stablecoin as a virtual currency redeemable for one United States dollar held in trust by the state. The attorney general is in charge of monitoring the token’s issuance, and if it contradicts federal or state law, the project will be frozen. The Stable Token Commission has until November 2023 to provide a report on the feasibility of the stablecoin.
Governor Mark Gordon at the beginning vetoed the bill due to concerns about implementation and costs. Nonetheless, he later allowed it to become law, recognizing its probability to strengthen Wyoming’s reputation in the digital asset world.
The capacity conflict between state stablecoins and the Federal Reserve remains uncertain. Several believe there may be a compromise allowing states to make available stablecoins under a particular framework, while others see no problem with state- announced stablecoins. Until there is a federal regulatory framework, individual states are likely continuation experimenting with new cryptocurrency initiatives.
In summary, while Wyoming leads the way in developing its own stablecoin, other states are likewise considering similar initiatives. The impact on fiat money and the power of the Federal Reserve is still unclear, but until there is federal regulation, states will continue to explore innovative cryptocurrency projects.
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