Wyoming is set to become the first state in the US to have its own stable token, which has been designed to facilitate frictionless payments that could eliminate costly credit card fees charged to merchants. The stable token was signed into law by Governor Mark Gordon on 18 March 2023. Last year, the governor vetoed an earlier version of the stable token, but he has since been satisfied that lawmakers have made enough progress to address his concerns. Gordon acknowledged that digital currency is likely to become a part of the financial sector's fabric in the future, and praised Wyoming's approach as "laudable".
One of the key features of Wyoming's stable token is the potential to eliminate credit card fees charged to merchants. The American CryptoFed DAO, a decentralised autonomous organisation, has already endorsed the token for such exchanges. The company has the support of the Merchant Advisory Group, which represents many of the largest merchants in the US with more than $4.8tn in annual sales at over 580,000 locations across the country. The group claims that if just 5% of the merchants' transactions were to go through Wyoming's stable tokens, the return for the state, based on one-month T-bills generating 3.86% interest, is estimated to be around $9.3bn.
However, federal regulators have clobbered some of Wyoming's digital asset companies, rejecting Custodia Bank's application for access to the Federal Reserve system. The regulators claimed that the bank's safeguards against money-laundering and support of terrorism were not strong enough. The American CryptoFed DAO is also presently facing difficulties and an enforcement action by the Securities and Exchange Commission after the DAO sought to register its two tokens with the federal agency. Chief Financial Officer Xiaomeng Zhou has expressed optimism that the DAO's enforcement case will highlight how uncooperative federal regulators have been with digital asset companies in general.
Senator Chris Rothfuss, a key architect of the Wyoming stable token, said he is not worried that the SEC can block Wyoming's stable token, as the program has been structured in such a way that it utterly fails to be a security. Each stable token is a digital representation of a single US dollar, held in trust for the token holder. To back the token, Wyoming will buy short-term US treasuries, which will generate interest earnings for the state. Those earnings will be allowed to accumulate until they total 102% of the value of all tokens, so there will always be more than enough cash on reserve to redeem them.
Wyoming's senators are optimistic about the future of the stable token with a timeline of December 2023 for the first token.
Disclaimer:
GlobalStablecoins.com is an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. Don’t take it as investment advice. Speak to an advisor before you risk investing in an ICO, Cryptocurrencies, Cryptoassets, Security Tokens, Utility Tokens, Exchange Tokens, Global Stablecoins, Stablecoins or eMoney Tokens. GlobalStablecoins.com is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
Affiliate Disclosure / Sponsored Posts:
If a Sponsored Post contains any mention of a crypto project, we encourage our readers to conduct diligence prior to taking further action. GlobalStablecoins.com does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
GlobalStablecoins.com may receive compensation for affiliate links. Should you perform activities in relation to an affiliate link, it is understood that some form of compensation might be made to GlobalStablecoins.com. For example, if you click on an affiliate link, and sign up and trade on an exchange, GlobalStablecoins.com may receive compensation.
Before you invest in Cryptoassets you should be aware of the following,
Cryptoassets are considered very high risk, speculative investments.
If you invest in Cryptoassets you should be prepared to lose all your money.
All Sponsored Posts are paid for by crypto projects, coin foundations, advertising firms, PR firms, or other marketing agencies. GlobalStablecoins.com is not a subsidiary of any marketing agency, nor are we owned by any crypto or blockchain foundation.
The purpose of offering Sponsored Posts to our advertisers is to help fund the day-to-day business operations at GlobalStablecoins.com.
If you come across a Sponsored Post which you believe is fraudulent and/or “scammy,” please contact us and we will perform an immediate investigation
All Rights Reserved | GlobalStablecoins.com