Innovation and Financial Transformation
Promoting Blockchain Technology Applications: Since 2018, Wyoming has passed over 40 blockchain-related laws aimed at becoming a 'digital asset-friendly state.' The launch of stablecoins is a continuation of its blockchain strategy, attempting to improve transaction efficiency and transparency through public blockchain technologies (such as Solana, Ethereum, etc.), while avoiding privacy disputes that may arise from private networks.
Reshaping Payment and Financial Systems: Stablecoins can provide low-cost and fast payment methods for residents and businesses within the state. For example, the state government envisions that users could directly use WYST tokens for purchases at cafes, even extending to cross-border transactions, promoting local economic development.
Economic and Fiscal Benefits
Diversifying Revenue Sources: The interest generated from the reserve assets of stablecoins (cash, U.S. Treasury bonds, reverse repurchase agreements) will be used to fund education and infrastructure projects, with expected annual revenues reaching millions of dollars. If promoted nationwide, the market value could exceed $100 million.
Support for Agriculture and Small Businesses: Governor Mark Gordon emphasizes that stablecoins can open new markets for farmers, ranchers, and small businesses, reducing friction costs in the traditional financial system.
Regulatory and Legal Challenges
Disputes over Federal and State Authority: Although Wyoming Senator Chris Rothfuss believes that state stablecoins will not compete with the Federal Reserve (as they rely on the dollar as the underlying asset), there are still views that this move could challenge the Federal Reserve's dominance over monetary policy, sparking a debate on 'central bank competition.'
Legality Ambiguity: In 2023, the state government expressed concerns about the applicability of federal laws, needing to ensure that the project complies with legal provisions, especially regarding reserve management and audit transparency.
Technical Implementation and Market Acceptance
Reserve and Stability Assurance: Reserves must maintain at least a 102% capitalization requirement and ensure parity with the dollar through regular public audits, which is key to maintaining user trust.
Collaboration and Promotion: The state government plans to collaborate with cryptocurrency exchanges and wallet providers to promote token circulation. However, the choice of technology platforms (such as Ethereum or Solana) may affect transaction speed and costs.
