Wyoming is on the verge of becoming the first U.S. state to issue its own stablecoin, the Wyoming Stable Token (WYST), set to debut next month. Although it will not initially offer yield, plans are in place to explore this feature in the future, according to State Senator Chris Rothfuss. The introduction of WYST comes amidst concerns regarding the recently passed GENIUS Act, which imposes restrictions on stablecoins but may not apply to state-issued tokens like WYST. This stablecoin aims to facilitate real-time payments, offer financial sovereignty to Wyoming residents, and potentially fund the state’s school system. There are ongoing discussions about the role of blockchain analytics to monitor illicit activities associated with the token. Some critics, including Rep. Marjorie Taylor Greene, argue that the legislation may lead to a de-facto centralized bank digital currency (CBDC), raising fears of a cashless society controlled by the government. However, proponents distinguish WYST as a product that differs significantly from CBDCs, as it is backed by U.S. Treasuries rather than being minted arbitrarily by the government.

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