Wyoming is set to become the first U.S. state to introduce a state-backed stablecoin, the Wyoming Stable Token (WYST), expected to launch next month. Initially, WYST will not offer a yield, but state Senator Chris Rothfuss mentioned future plans to enable this feature, with generated funds potentially supporting Wyoming's school system. The recently passed GENIUS Act mandates financial institutions to have mechanisms for freezing transactions, but it is suggested that as a state-issued token, WYST may be exempt from certain restrictions on yield. Discussions emphasize the importance of upholding constitutional protections and resisting pressures to control transactions politically or financially. The token, backed by U.S. Treasuries, is designed to be different from central bank digital currencies (CBDCs), which can be issued without such backing. A pilot program is underway, with expected real-time payment capabilities, and Wyoming's approach reflects a desire for sovereignty amidst concerns about federal overreach.

Source 🔗