Wyoming Is Developing Its Own U.S. Dollar-Backed Stablecoin: A Blueprint for a Federal Digital Dollar

Following a recent update by CNF on Wyoming legally approving CryptoFED DAO to operate as a legal entity in the US, Wyoming is taking a significant step

As reported by CNF, Wyoming is making a major stride in crypto development by launching its own U.S. dollar-backed stablecoin, following a recent update on Wyoming legally approving CryptoFED DAO to operate as a legal entity in the US, according to CNBC.

The Wyoming stable token is set to launch in early 2025. The initiative aims to facilitate faster, cheaper transactions and create a new revenue stream for the state. Governor Mark Gordon highlighted the importance of transparency, stating:

“Success would be the adoption of a stablecoin… that’s transparent, that is fully backed by our short-term Treasurys [and]that’s dollar-dependent.”

This stablecoin could serve as a model for a federal digitized dollar, reflecting Wyoming’s history of pioneering business law.

Wyoming is currently evaluating partners to develop the stable token, which will be used for everyday payments through exchanges. The project prioritizes the public good, with reserves invested in Treasurys and reverse repos to fund public schools. Flavia Naves, a commissioner at the Wyoming Stable Token Commission, emphasized the focus on public trust:

“There will be audits available to the public on how many tokens [are] in circulation [and] how much money is in the bank account backing, so you can always see there is a 1-to-1 [stablecoin-to-dollar ratio].”

The state’s move is also a response to the Federal Reserve’s hesitation to create a central bank digital currency, positioning Wyoming at the forefront of digital currency innovation. This initiative is also integrated with educational institution involvement. For example, as CNF previously reported, The University of Wyoming would launch the first Bitcoin Research Institute in August, directed by Bitcoin activist Bradley Rettler.

At the time of writing, Bitcoin (BTC) is trading at $64,104.46, with a decline of 0.12% in the past day and a surge of 9.35% in the past week.

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