Wyoming Kicks Off Minting of First State-Backed Stablecoin in US

by

As a researcher with a background in blockchain technology and digital currencies, I find Wyoming’s stablecoin journey an intriguing development in the crypto world. Having followed the news closely since 2022, it is exciting to finally see progress being made towards the launch of the first state-backed stablecoin in the US – Wyoming Stable Coin (WYST).

Since 2022, Wyoming has been carefully considering its next steps, and now, they are moving forward with plans to introduce the first US-based stablecoin backed by the state.

In a recent social media update, cryptocurrency analyst MartyParty revealed that the production of the digital currency named Wyoming Stable Coin (WYST) has started. This token, which is pegged 1:1 to the US dollar value, is anticipated to become available for circulation later in 2022; however, a specific release date has yet to be announced.

The Wyoming Stable Token Commission (STC) has introduced a website specifically for WYST users, where they can access updates on the development of the digital currency. The STC is in charge of managing and supervising the creation and release of the stablecoin within the state of Wyoming.

Last March, a commission was formed with the passing of the Wyoming Stable Token Act, Senate Enrolled Act 85. This legislation granted the commission the power to introduce the first U.S. state-supported stablecoin into circulation.

Wyoming’s Stablecoin Journey

Wyoming, famous for its stunning vistas such as Yellowstone, Grand Teton, and Grand Prismatic Spring, began its venture into stablecoins in February 2022.

As a researcher studying the developments in the crypto market, I became intrigued by the growing importance of stablecoins within this sector. It all began when a passionate group of lawmakers in Wyoming took notice and introduced the stablecoin bill to our legislative assembly. This innovative legislation aims to empower the state of Wyoming to issue its own digital asset, acting as a virtual counterpart to the US dollar. The value of this stablecoin would be pegged to one US dollar, ensuring stability and trust, with the state holding the corresponding fiat currency in reserve.

The goal was to help Wyoming, known as the Cowboy State, adopt blockchain technology, carry out digital currency transactions, and process payments in a secure manner, bypassing the uncertainties of the cryptocurrency market’s volatility.

In the same year, Governor Mark Gordon advocated for a pause in the plan’s execution, expressing concern for proper implementation to secure its lasting achievements.

The Governor emphasized that while it’s important to be the first, enduring and dependable hold even greater worth. Wyoming’s good name is on the line.

As a dedicated researcher, I’ve carefully examined the legislative process surrounding this bill. After undergoing rigorous scrutiny and deliberation, it was ultimately approved during the Budget Session this year. The enacted legislation, now referred to as Senate Enrolled Act 44, empowers our state to issue the proposed stablecoin, which is backed by reserve assets like US treasuries.

Wyoming Stablecoin to Debut on Ethereum

The STC has been given approval to launch WYST, which is believed to eventually operate on the Ethereum blockchain. Based on current information, this arrangement could enable users to engage with the stablecoin on various DeFi sites dedicated to trading digital assets.

The STC previously stated that access to WYST would be limited to US-based and regulated centralized exchanges like Coinbase and Binance.US.

As Wyoming became the pioneer US state to legislate the creation of stablecoins within its borders last year, it’s important to note that Texas is not the only state expressing interest in developing a state-issued digital currency backed by gold. In April 2021, Texas lawmakers proposed new bills for this purpose.

Read More

2024-05-27 14:28