Wyoming is set to become the first U.S. state to issue its own stablecoin, the Wyoming Stable Token (WYST), which aims to provide a publicly funded alternative to central bank digital currencies (CBDC). Although WYST won't initially offer yield on its launch next month, support exists for enabling it later. The state previously passed the GENIUS Act, which mandates that stablecoins have procedures to block certain transactions, but proponents argue these rules may not fully apply to WYST. Wyoming's leaders assert their stablecoin is significantly different from a CBDC as it is backed by U.S. Treasuries, contrasting with centralized digital currencies that could be minted without backing. The token aims to enhance the local economy, primarily funding public education, and is currently undergoing a pilot to facilitate real-time payments. Lawmakers emphasize Wyoming’s ability to operate independently from federal authorities and uphold constitutional protections, aiming to navigate regulatory challenges brought by the federal government while fostering innovation in the crypto space.

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