The state of Wyoming is planning to launch a stablecoin tethered to the U.S. dollar called the Wyoming stable token, with the premise of allowing Americans and businesses a faster and cheaper way to transact while creating a new income stream for the state.

These ambitions were revealed at the Wyoming Blockchain Symposium (SALT) in Jackson Hole on August 19th-22nd, which also took place during and at the Federal Reserve’s annual meeting in Jackson Hole.

CNBC notes that ‘the group behind it is hoping it can serve as the model for a digitized dollar at the federal level.’

A stablecoin, however, is not a central bank digital currency (CBDC), nor is it a traditional cryptocurrency such as Bitcoin or other “meme coins” that are subject to extreme volatility and price action. Investopedia says a stablecoin “aim[s] to provide the price stability required to encourage wider use. Stablecoins promise cryptocurrency adherents the best of both worlds: stable value without the centralized control attributed to fiat.”

Wyoming Governor Mark Gordon explained to CNBC why his state is working to deliver a stablecoin.

[Success would be] adoption of a stablecoin […] that’s transparent, that is fully backed by our short-term Treasurys [and] that’s dollar dependent. One of the big things for me is to be able to bring back onshore a lot of our debt, because if it’s bought by treasuries and supported by Treasurys, it will help to stabilize that market to a degree.

It is clear to me is that digital assets are going to have a future. The United States has to address this issue. Washington’s being a little bit stodgy, which is why Wyoming, being a nimble and entrepreneurial state, can make a difference.

Flavia Naves, a commissioner at the Wyoming Stable Token Commission, also added: “When you walk into Cowboy Coffee in Jackson, Wyoming, and you want to buy your latte, there’s going to be their wallet there in Solana that you can use to buy your coffee with the Wyoming token.”

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]. This is a public token as well so as with any public service, all the information is available.

She added

Gordon referenced federal government overreach when it issued bailouts proceeding the Great Recession caused by mortgage-backed securities and the issuance of high-risk debt instruments by institutions, Coin Telegraph reported, hence why

There was a time before 2008 when capitalism was really important and that meant failure could happen. Somewhere around the 2008 time frame, we made a decision that too big to fail is something that the government was going to stand behind.

He added

Coin Telegraph added that Wyoming plans to reach out to exchange partners for listing sometime in Q1 of 2025.

CNBC reported that Wyoming’s move was also in response to the Federal Reserve’s supposed hesitance to launch a CBDC. The outlet wrote:


Naves echoed that the Wyoming stable token is in part a response to the reluctance of the Federal Reserve to create a central bank digital currency, or CBDC, at the federal level. According to Atlantic Council, there are more than 30 countries piloting a CBDC, including the digital euro, and 19 of the G20 countries are now in the advanced stages of developing one.

CBDCs have been widely criticized due to concerns around privacy and surveillance on government-run blockchains. But Naves said that wouldn’t apply here since Wyoming plans to use public blockchains, such as Ethereum or Solana, instead of private networks. The group hasn’t specified exactly which networks it’ll use but has said it wants the coin to be available on several different platforms.

If it’s successful, it could go beyond the dollar.

Down the road, the intent is to utilize the same technology … to enable other elements to turn into tokens and be on blockchains, whether it is commodities such as gold or oil, whether it is real estate, other governmental obligations – those are still to be determined. But the success of this initial use case, which is digitization of the U.S. dollar, is the one that is going to enable other use cases to proceed.

Naves said.

The Federal Reserve has been wishy-washy about its release of a CBDC. Fed Chair Jerome Powell has at times publicly said the Federal Reserve has no real plans to release a CBDC, and would need congressional support to be accepted. But the Federal Reserve has also contradicted this and has made it clear that they are actively working on CBDC and it is a top priority for them.

Wyoming has been working on releasing a stablecoin for many years. Coin Telegraph added: ‘Wyoming established the Stable Token Commission in July 2023, though the stablecoin initiative was first proposed in a February 2022 bill. When the bill was introduced, Governor Gordon vetoed it, arguing that there was not enough information or a solid business plan in place to push through the proposal.’


AUTHOR COMMENTARY

Why would one want to tether their currency to the U.S. dollar, which is rapidly declining in value and parity, as the rest of the world is working overtime to de-dollarization?

CNBC’s admission of what the real goal of this is about is what I have suggested before about crypto: it is nothing more than a proxy and springboard for the eventual launch of CBDCs. They are nothing more than a trojan horse. Larry Fink of Blackrock pretty much made that very clear when the Bitcoin ETF was released earlier this year. SEE: SEC Approves Bitcoin ETFs In Historic Move. Blackrock’s Larry Fink Says It’s ‘An Asset Class That Protects You,’ Says It’s Next Step To Tokenization

Proverbs 29:5 A man that flattereth his neighbour spreadeth a net for his feet.

In 2019, Blackrock was a guest at the Fed’s Jackson Hole meeting, and they issued a document that explicitly said they wanted massive inflation and “helicopter money,” and this would be for the purpose of implementing CBDCs and a tokenized economy.

For example, policy innovations in the next downturn will likely need to take inequality more directly into account to be politically palatable. Not all asset purchase programmes are born equal when it comes to their impact on inequality. Policy responses that put money more directly in the hands of citizens might be more attractive. The rise of central bank-issued electronic money (not cryptocurrencies) might achieve these objectives in ways that were not previously possible.

The document said

The U.S. Constitution defines money as gold, not paper and not crypto. But I think we understand and realize that we will never return to a gold-backed currency: it is antithetical to the goals of central banks, because it would not allow them to inflate; and in the case of the U.S. it would prevent the government from being able to sanction other countries, and have this pseudo-prosperity we have had; and it would most importantly give purchasing power and financial liberty back to the average Joe. The Federal Reserve and central banks collectively will not allow that to happen.


[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).

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