Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Stable Coins Forum => Topic started by: Peter90 on January 12, 2024, 08:13:45 AM
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Wyoming Lays the Foundation for a Government-Issued Stablecoin
Wyoming’s recently enacted Stable Token Act is the latest step in the Cowboy State’s efforts to create a business and legal environment that is tailored to digital assets and blockchain businesses. It also cements Wyoming’s position in the debate among regulators and the private sector around the types of entities that can – or should – issue stablecoins.
The Act creates a path for Wyoming to issue the United States’ first government-issued stablecoin, which would be fully backed by reserves of US dollars.
https://www.mayerbrown.com/en/perspectives-events/publications/2023/05/wyoming-adopts-stable-token-legislation-and-lays-the-foundation-for-a-government-issued-stablecoin
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The development of a government-issued stablecoin in Wyoming represents an interesting move in the intersection of traditional finance and cryptocurrencies. Government-backed stablecoins could potentially offer the benefits of both blockchain technology and the stability associated with traditional fiat currencies.
This initiative could lead to increased adoption and acceptance of digital assets in official government transactions, potentially providing more efficient and transparent financial processes. However, it will be crucial to monitor how regulatory frameworks evolve around government-issued stablecoins and how they integrate into the broader financial system.
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Benefits
Wyoming has a unique, immediate, and global opportunity to enter this space with a fully-reserved digital token that preserves price parity to the United States dollar.
(so 1 Wyoming Stablecoin = 1 $)
By creating the first domestic stable token issued by the public sector, Wyoming can offer significant benefits over privately-issued incumbents.
These include:
- *Increased Transparency*
Disclosures shall be made in accordance with stringent reporting requirements for state agencies.
- *Enhanced Stability of Reserves*
Reserves shall be invested exclusively in US treasury securities.
(100% backed up by US Treasury, so more stable than USDT which is backed up 76% by US treasury and 30% by whatever (https://www.altcoinstalks.com/index.php?topic=314971.0))
- *Public Good*
Investment earnings generated over and above a 102% reserve shall be reinvested into Wyoming’s general fund, which provides capital for schools and other public initiatives.
(while Tether keep all they earnings for themselves)
https://stabletoken.notion.site/Procurement-95d69b3c57ff48018ccaecb1c2c47ff6
Sometimes public is better than private...