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Wyoming Is Pushing Crypto Payments, Trying To Beat the Fed To a Digital Dollar (cnbc.com) 77

Posted by BeauHD from the digitizing-the-dollar dept.
Wyoming is pioneering the next phase of crypto growth by creating its own U.S. dollar-backed stablecoin, the Wyoming stable token. The state aims for an early 2025 launch and have it serve as a model for a digitized dollar at the federal level, while also using the token's reserves to fund public schools. CNBC reports: Wyoming is currently vetting potential partners and vendors with more tech expertise to help build the stable token. It will require an exchange and wallet providers -- Coinbase and Kraken, for example, offer both -- to purchase and hold the token. The state plans to issue the token to an exchange so the exchange can issue it to the retail user. From there, it should be just another payment method for everyday things, said Flavia Naves, a commissioner at the Wyoming Stable Token Commission. "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," she said, describing the vision for the stablecoin.

It also has a public good tilt to it: the commission plans to invest reserves that back each token in circulation into Treasurys and reverse repos, and use the interest made on those investments to fund its public schools. At the conference, [Wyoming Governor Mark Gordon] emphasized the importance of resisting the urge to focus too much on how much money the state can make here and to instead prioritize reserve management. [...] Naves emphasized that there will be a "buffer" in the reserves to account for any potential deviations and full transparency to establish and maintain public trust.

"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]," she said. "This is a public token as well so as with any public service, all the information is available." The commission invites the public virtually to its meetings on the stable token and posts the minutes to its website afterward. "This is fully reserved and part of what we've been working out ... is to make sure that we can fully back whatever it is we're going to do," Gordon said. "Plus the fact that our legislation says that when a person buys a Treasury or a repo, we're going to have that in evidence, you're going to be able to see that. So hopefully we can avoid the de begging issues." Success would be "adoption of a stablecoin ... that's transparent, that is fully backed by our short-term Treasurys [and] that's dollar dependent," Wyoming Governor Mark Gordon told CNBC at the Wyoming Blockchain Symposium in Jackson Hole. "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," Gordon said. "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."
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Wyoming Is Pushing Crypto Payments, Trying To Beat the Fed To a Digital Dollar More

Wyoming Is Pushing Crypto Payments, Trying To Beat the Fed To a Digital Dollar

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    • I'm sure this has something to do with joining Texas in a secession movement.

      • Re: (Score:2, Interesting)

        by Seven Spirals ( 4924941 )
        We're not that lucky. However, keep laughing until one day the Feds pass one law too far and some state actually starts the process. It won't be as funny when the feds start pointing guns at the state troopers etc... You'd better hope if Texas does leave the states that stay have the /. attitude of "See ya!" because I'm not (at all) convinced there is anything the rest of the country could do about it. PANTEX is in Texas. Think for a minute about what that means.

        • Man pass the bong, I HAVE to take a rip of whatever your roommate put in it!

        • Re:This is utter stupidity (Score:4, Insightful)

          by Chris Mattern ( 191822 ) on Friday August 23, 2024 @06:10PM (#64730580)

          "some state actually starts the process"

          There is no such process. That got rather decisively demonstrated in 1865.

          • I mean, that is the process to leave the Union. Obviously the government declined and then we had to fight a war over it.

            Hopefully we never have to do that again.

          • Re: (Score:2)

            by schwit1 ( 797399 )

            There is a process. That got rather decisively demonstrated in 1776.

            • That wasn't 'secession', that was revolution, and the reasons for it were vastly different and actually valid, whereas so-called 'red states' in this country are full of fascist pigs and their useful idiot supporters who wish to dismantle our represtantative democracy and install an authoritarian theocratic dictatorship in it's place.

              • That wasn't 'secession', that was revolution

                Revolutionaries don't really care what you call them, just FYI.

                whereas so-called 'red states' in this country are full of fascist pigs and their useful idiot supporters who wish to dismantle our represtantative democracy and install an authoritarian theocratic dictatorship in it's place.

                Some might, others might want to establish a place that has actual freedom of speech, might want to ditch/default-on the $35T in Federal Debt, and go back to something that looks like the Bill of Rights, which the Feds are making war on, especially on the First Amendment. Are you going still to call it "America" after we have hate speech laws ? You really have no idea what kind of politics might animate them and you sound like a hyperventilating

          • The process to allow succession is in the amendment procedures of the Constitution. There are two ways to do this: one is to have 3/4 of the states ratify an Amendment to allow succession, and the other is where Congress can vote and ratify.

            • Let's hope for a process like that, instead of a violent one. However, consider this question: who is more likely to make threats first, the leavers or the Feds? You know it'd be the Feds and you know it's because they wouldn't want to lose a big economic engine like Texas, because it'll shrink they tax base they want to share that $35 Trillion in debt with. If your spouse ran up $100k in credit card debt and you wanted a divorce, you can expect that big debt to play a central role in the divorce.

        • Re:This is utter stupidity (Score:5, Insightful)

          by Chris Mattern ( 191822 ) on Friday August 23, 2024 @06:16PM (#64730594)

          "PANTEX is in Texas. Think for a minute about what that means."

          It means that federal guards of that facility would gun down any state force stupid enough to try to seize the place, and would call for whatever reinforcements they'd need to do it.

          • True.
            Pantex is similar to Rocky Flats where they made triggers for nukes back in the day. There were frequent protests, blocking the train tracks, etc. I worked with a fellow who was a captain in the Army who brought his troops up from Fort Carson as needed for security. He said anyone who came over the wire would be shot first and questioned later, if they survived.

            Once a couple of friends and I were going to Arvada from Boulder to pick up some car parts and we took a wrong turn and ended up at the guard s

            • Those guards wouldn't be as tough if 3000 armed militia showed up. Use your head and think about what a real standoff would look like and what that would mean.

              • Use your head and think about how long 3,000 militia types would last against an essentially unlimited number of Army troops with all the shit they can bring to a fight (attack helicopters, heavy machine guns, mortars, etc, etc, etc.). And it will be free-fire, not a standoff. When nuclear weapons are involved, special rules apply.

                • It's not hard to envision such a scenario. They'd need to get the reinforcements to PANTEX in a double-quick-fast hurry. Air defenses already in place would likely be re-tasked with defending the area and it wouldn't take any time at all to simply kill the guards and truck or fly out the bomb-pits to every corner of the state. You are also assuming the Army wouldn't be in chaos over orders to attack Americans (even ones trying to bail on you). Lots of folks in the Army are from Texas, especially those livin

          • It means that federal guards of that facility would gun down any state force

            You're not thinking this through. Federal guards could point weapons at a state force "stupid enough" to try and seize the place (that is, if they even got close enough to talk), but it's in Texas surrounded by Texans. I used to live right outside the place and I know the people and the area. If you're surrounded and cut off, all you can do is hope you have enough arms to hold out for a few days or hours.

            would call for whatever reinforcements they'd need to do it.

            Wishful and magical thinking won't help. Surrounded by a well armed force, they'll simply hit the guard

        • Re:This is utter stupidity (Score:5, Interesting)

          by ArchieBunker ( 132337 ) on Friday August 23, 2024 @07:38PM (#64730752)

          Texas leaving would be the funniest thing to happen in my lifetime. Go ahead leave, but before you do please return all US government property. Like military bases, tanks, missiles, and Houston Space Center. How are you going to handle all the social security and medicare payments that the elderly residents will no longer be receiving? Have fun with your new trading partners, Mexico and Cuba.

          • Re: (Score:2)

            by kbahey ( 102895 )

            Texas leaving would be the funniest thing to happen in my lifetime. Go ahead leave, but before you do please return all US government property. Like military bases, tanks, missiles, and Houston Space Center. How are you going to handle all the social security and medicare payments that the elderly residents will no longer be receiving? Have fun with your new trading partners, Mexico and Cuba.

            Never underestimate the power of stupidity ...

            Look at Brexit, and the mess that it caused in the UK for fishermen and

            • I have no proof to back it up, but I still believe that 'brexit' was socially engineered by foreign nationals, probably Russian, in an effort to weaken Britain and NATO.

              • Re: (Score:2)

                by kbahey ( 102895 )

                I have no proof to back it up, but I still believe that 'brexit' was socially engineered by foreign nationals, probably Russian, in an effort to weaken Britain and NATO.

                From what I have read, Russia did influence the outcome in favour of "leave".

                But there were other forces at play there, including populists; anti-Europe individuals and parties, plain xenophobia (e.g. Nigel Farage, "country is being overrun by the Polish" crowd, "we want our sovereignty back" crowd, and so on).

                How much each factor contribute

                • There were definitely fools who couldn't see past the end of their own noses, that's for sure, and that's a given, humans be stupid about any number of things.
          • Texas seceding would last maybe a day. I fail to believe that U.S. military bases within Texas would be 100% on board with that, and I somehow don't think that National Guard units within Texas would be either, therefore the 'Battle of Texas' would be fought from within Texas, led by commanders and troops who know the difference between lawful and unlawful orders when they hear them. Similar story for FBI and U.S. Marshalls within Texas. I'm sure Abbott would attempt to order local police departments to fig
            • I'm from Texas and was born a Texan. Today, I think what you're saying would be true. However, I'm talking about what could happen down the road, if things keep going the way they are going. If you get a shift in popular opinion that's strong enough all those calculations change and you realize that the feds wouldn't be in as strong of a position as the table pounders in this thread are claiming, not by a long shot.

          • Texas leaving would be the funniest thing to happen in my lifetime.

            There are plenty of folks in Texas who would be laughing right along with you... as they left.

            Go ahead leave, but before you do please return all US government property.

            Yeah, see, that's the part that might be a problem. You want your nukes? Come and take them. 'cept Texas might decide to return a few to you the old fashioned way, if you got too froggy about asking.

            Like military bases, tanks, missiles, and Houston Space Center.

            Don't forget the nukes and the thousands of nuke-cores at Pantex. Ask for those back, too. I'm sure the response in that situation would amuse you further, since you think civil nuclear war is hilarious.

            How are you going to handle all the social security and medicare payments that the elderly residents will no longer be receiving?

            They'd have any

      • Let 'em. Then there'll be all the justification necessary to arrest everyone responsible. As sad as the optics would be to have to arrest a man in a wheelchair, it's not like Abbott won't have it coming if that's what they're going to try.
        Do people who seriously plan to secede really not remember history? Don't they think the government is watching for things like this to be attempted?

      • Good reading.

        "Both Republicans and Democrats in California supported increased gun control, as did the National Rifle Association of America.[8][9] Governor Ronald Reagan, who was coincidentally present on the Capitol lawn when the protesters arrived, later commented that he saw "no reason why on the street today a citizen should be carrying loaded weapons" and that guns were a "ridiculous way to solve problems that have to be solved among people of good will." In a later press conference, Reagan added that

    • Just run of the mill corruption (Score:4, Interesting)

      by rsilvergun ( 571051 ) on Friday August 23, 2024 @05:11PM (#64730446)
      They will use this to funnel tens of millions if not hundreds of millions of the taxpayer dollars to their donors. Because about half of all voters are distracted by culture war bullshit they can get away with damn near anything.

      I think that'll change in about 10 years but they're going to grab as much money as they can in the meantime.

      • Beyond the obviousness that the only thing constant is change, what gives you the impression we will see any positive changes over the next ten years? Cultural war bullshit has been going on for many decades now. Social media made it even worse. I don't see how it's going to improve and at the same time, I really don't want to see us hit rock bottom and have to learn even harder lessons.

      • In Wyoming? There is no culture war in Wyoming. We've opted out. And for the most part don't care about the rest of the country.
    • Nah, just late, that's all. Unless they make it convertible with gold, it doesn't matter. It'll be just another shitcoin with 20,000 competitors. If they do tie in gold, someone like the governor will get Muammar Gaddafi'd.
      • They are proposing tokenized Treasuries so it will be dollars that pay interest with transparency. It's like USDC by a government. Choice is great and if you want tokenized gold I heard Paxos has something like that. But gold is volatile so not great for everything. I wonder, are you on a gold standard ftor all your bills?

    • Re: (Score:2)

      by JeffSh ( 71237 )

      what will we do without womens hosiery?

    • Re: (Score:2)

      by gweihir ( 88907 )

      Are they insane?

      Looks like it. The tech is nowhere near ready. With the current level of security in personal computing, this is an invitation to all thieves, nothing more.

      • Are they insane?

        Looks like it. The tech is nowhere near ready. With the current level of security in personal computing, this is an invitation to all thieves, nothing more.

        Which is ironic since cryptocurrency is mostly used by criminals to begin with.

  • Comment removed based on user account deletion

  • "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," she said, describing the vision for the stablecoin.

    Will this Wyoming Money be usable elsewhere? Either way, simply -- why?

    Musing: If only things like cash and credit cards existed I could easily by a latte everywhere ... even in Wyoming.

    • Will this Wyoming Money be usable elsewhere?

      This is literally, in the truest sense of the word, one of the reasons the Constitution was created. With each state having its own currency, trying to do business across state lines was a nightmare. And that includes high inflation in one state while another state had lower inflation OR the distance you were transporting goods. If you were trying to sell your North Carolina tobacco in Massachusetts, the two currencies were far apart from each other as far as pa

      • Well funny you mention the constitution cos...

        Article I, Section 10, Clause 1:

        No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.

        Kinda seems like this wyoming currency would last aproximately 30 seconds in front of a judge,.

        • Kinda seems like this wyoming currency would last aproximately 30 seconds in front of a judge,.

          Until it gets to the Supreme Court. Then the "originalists" will claim Wyoming isn't really coining money since it's digital so there's no coin to be had.

    • Will this Wyoming Money be usable elsewhere?

      Pretty sure only the fed has the power to create legal currency. So, my guess would be: No.

      Either way, simply -- why?

      Because they want to either:

      A) Unhook themselves from the US federal currency and it's associated debt. (FAT CHANCE. The Feds would never allow it because it would weaken their power to print money, and encourage other states to do the same. Leaving the fed on the hook for all of their printing, and would force them to raise federal taxes to cover it.)

      B) It's the latest attempt at defunding the public school sys

      • First, you seem to know zero about Wyoming. We have a reasonably well funded school system that nobody complains about. Heck, a rancher I know, who is a graduate in comp sci, teaches robots in the local grade school and the kids love it. Second, how can a dollar denominated crypto currency unlock the state from the US federal currency? Sheesh, you've listened to too much Alex Jones.

        • We have a reasonably well funded school system that nobody complains about.

          Obviously, someone there thinks that money would be better spent on a crypto scam. So I wonder how much longer the state will remain that way if this legislation passes.

          Heck, a rancher I know, who is a graduate in comp sci, teaches robots in the local grade school and the kids love it.

          Good for them. Not relevant to this conversation, but since you brought it up, I hope they're ok taking payments in bitcoin.

          Second, how can a dollar denominated crypto currency unlock the state from the US federal currency?

          Because US federal currency has a price determined by the fed. A bitcoin currency has the price determined by the majority holders. It may be "backed" by the US dollar today, but that can change. Especially if the co

          • Regarding your comment: >Because US federal currency has a price determined by the fed. A bitcoin currency has the price determined by the majority holders. It may be "backed" by the US dollar today, but that can change. Especially if the cost to convert to / from US dollars becomes prohibitive. Further, never underestimate the power of the company store. Paying others in a self-made up currency is the textbook definition of of a scrip [wikipedia.org]. If the majority of your buyers are paying in scrip,
    • Nobody who is a real person in Wyoming thinks of Jackson, Wyoming as being part of the state. It's Cali-DC not WY.
  • Why should I give my money for this? Oh it's safe yay, because it's pegged to the dollar. Great. I'll know I can get my money back and I won't lose the money. ...but why should I give my money for this? Nobody understands the very basics, and that includes probably many of my fellow Econ Undergrad graduates. This would include ... but money is just paper wtf? If you can understand the answer to that question, then you'll know this is just a one-time wealth transfer to the issuers of this coin for no r

    • ...but why should I give my money for this?

      To buy a latte in Wyoming, because universally accepted cash and credit cards don't exist -- oh, wait ...

    • Why shouldn't they sell you on it? What if they paid interest from their active investment profits?

    • It's like a dollar that pays interest and backed by US Treasuries.
      • Well you could just as easily get a fidelity debit card with your core account in FDXX I think it is called. Pays 5% and is invested in treasuries. A whole lot simpler. Pretty sure you could get that latte today with your debit card.

    • Re: (Score:2)

      by gweihir ( 88907 )

      Why should I give my money for this?

      How are people going to rob you online otherwise? At the moment, they have to either try credit-card fraud with risks and limits or approach you physically to steal your cash. You do not want to be stuck in the dark ages, do you? So convert all your money to this and get robbed in the _modern_ way, by your phone or computer getting hacked!

  • Yeah, sure you are (Score:4, Funny)

    by quonset ( 4839537 ) on Friday August 23, 2024 @05:42PM (#64730498)

    which is why Wyoming, being a nimble and entrepreneurial state, can make a difference."

    They're so nimble and entrepreneurial, they've banned the sale of electric vehicles [usatoday.com] by 2035. Because that nimbleness and entrepreneurial spirit can't figure out how to install charging stations or electrify them.

    • Re: (Score:2, Informative)

      by wyHunter ( 4241347 )
      Again, we have wing nuts just like you do. Electric cars are not banned in the state, nor will they be banned by 2023. No sane person in Wyoming has one, because of our distances to drive. My grocery run is 150 miles or so if I do 10 miles of round town errands, which I certainly do, when I get there. Due to our low population density, while there are various charges in bigger towns, you're pretty much limited to plugging in at 110 or 220 at home - but even then, though we have great electric cooperatives
  • Generally it is unconstitutional: ArtI.S10.C1.3 Legal Tender Issued by States [congress.gov], although I suppose if it's value is linked directly to the dollar it could be maybe considered a token? Isn't that just a bill of credit (also unconstitutional)?

    Why bother with all this stupid overhead? I guess they need to 'create jobs' while building this house of cards.

  • But I just can't find a reason to support this. The only benefit to the user that I can think of would be protection from physical theft. Then again, if this thing works with your phone (why wouldn't it), you still better not lose that phone!

    I suppose this could be a way to get cheaper transaction fees for digital payments for both merchants and the token holder. I don't have enough knowledge about the real cost of moving money between different entities to know any better.

    Also, from the second sentence of

  • There's no reason why the State of Wyoming should issue a stablecoin when there are already several. Those who dislike USDT can always pick USDC or DAI.

    If the State of Wyoming wants to promote crypto, they should start accepting an existing stablecoin as payment for fines or fees rather than attempting to create one of their own.

  • ..To Fund Public Schools. Right. (Score:3)

    by Bob_Who ( 926234 ) on Friday August 23, 2024 @09:50PM (#64730964) Journal

    Sounds like the California Lottery promise. Its for the public schools!! Typical line from a gambling racket. Public Schools are sinking fact everywhere.
     
    Wyoming is very expensive, sparsely populated, and widely owned by big money, not young families with many kids in public schools. Its just a PR campaign on their Casinos, rich retirees who can afford to screw with crypto, and is a lot of back room deals and speculation and payola. It will actually work in that microcosm better than any other State, so its a crypto PR campaign most of all.
     
    They can do this crypto thing, but it has zero to do with improving public education. The folks backing this all send their kids to private school, away from the riff-raff.

  • Watch for it to reappear somewhere in Russia after the next rugpull.

  • user. From there, it should be just another payment method for everyday things, said Flavia Naves, a commissioner at the Wyoming Stable Token Commission. "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," she said, describing the vision for the stablecoin.

    None, as far as I can tell. Just another payment method. On top of cash. Credit card. Debit card. Check. Blowjob. Whatever.

    I see no value as here, for me as a consumer. No reason, whatsoever, to use this stupid bullshit, instead of my credit card - which gets me cash back, miles, hotel points or whatever.

    • Nothing for the consumer if you're getting it back in loyalty programs but something for the resident.

      AFAIK, none of the credit card companies or payment services are run by businesses from the state of Wyoming. So if, say, they skim 1% off every purchase, that's 1% leaving the state every time you would use a card.

      (And from the other side of the world, every time I pay by card Visa or Mastercard process a handling fee back into US shareholders' pockets.)

      So they run a Solana exchange and the wealth stays in

      • Right. So again, what is the consumer getting?

        As a consumer, I couldn't care less if the state has 1% less money.

        Local business MAY offer a discount? Maybe. But that isn't guaranteed. Even if they did offer a discount, odds are good it won't be as good as my credit card reward.

  • LUV Wyoming, but tied to Treasury’s tells its been a long time in coming. Almost its political signaling is more valuable than an actual digital currency system statewide. Inconceivable Treasury’s could go negative interest, right?
    Wy is signaling states rights provide currency provisions to go it on their own if FED isn’t going to stop printing money.

    • Re: (Score:2)

      by dschnur ( 61074 )
      US States do not have the right to issue their own currency. See Article 1, Section 10 of the US Constitution. It's been the law of the land for a long time.
  • Article 1, Section 10: "No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts..."

    Seems pretty clear, states are not allowed to issue currency. Issuing any form of currency is only allowed by the federal government.

    Still, I wonder how this would hold up in court?

    There's lots of weirdness happening there too.

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