Wyoming is exploring new avenues for the development of digital currencies in the United States. The state launched WYST, the nation's first stablecoin issued by a public entity, and has entered the testing phase. However, the move sparked controversy within the Republican Party about the risks of CBDCs. This article explores the current state of WYST, policy challenges, and future prospects. (Summary: How to read the FSC's version of the draft "Encryption Law"? Banks issue NTD stablecoins? If the public has comments, leave an online message) (Background supplement: The Trump family's new crypto layout: can the USD1 stablecoin stir up the market? At the DC Blockchain Summit in March, Anthony Apollo, executive director of the Wyoming Stablecoin Council (Wyoming Stable Token Commission), hosted a special fireside chat with Mark Gordon, the state's governor and chairman of the Stablecoin Commission. Apollo officially announced that the Wyoming stablecoin WYST has entered the testing phase on multiple blockchain networks, saying that it is the first fiat-backed and fully reserved stablecoin issued by a public entity in the United States. The stablecoin committee plans to launch WYST on publicly visible blockchains, including Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Base. These preliminary, worthless test tokens have been deployed on the testnet in partnership with token issuance partner LayerZero. Nevertheless, the plan was subsequently questioned by senior Republican politicians, raising concerns about Wyoming's establishment of a CBDC (central bank digital currency). Wyoming takes the lead in testing the waters, the nation's first public entity stablecoin The Wyoming Stablecoin Council was established in March 2023 under the Wyoming Stablecoin Act. The task is to issue stable tokens that are fully backed by state laws and fiscal responsibilities. Its mission is to enhance financial transparency through blockchain innovation while driving economic growth. In the official announcement, the Commission noted that LayerZero's OFT (Omnichain Fungible Token) standard and extensive experience in secure smart contract development provide a robust, scalable suite and compliant solution that meets the Commission's legislative requirements for a multi-chain stablecoin. As part of preliminary testing, a third-party cross-chain bridge powered by LayerZero StarGate.io conducted a WYST demo transaction between Ethereum and the Avalanche testnet. WYST's architecture as an OFT means that it can be bridged over any compatible interface — StarGate.io is just one example. During the fireside chat, Governor Gordon highlighted Wyoming's commitment to transparency and innovation, noting the potential of blockchain technology in building a secure and efficient financial ecosystem. "We are excited to share Wyoming's vision of state leadership in the nation's capital," Gordon noted. "Our forward-thinking approach to blockchain and digital asset legislation has made Wyoming a model not only for other states, but also for the federal government." Gordon added that WYST has several advantages: including having to over-collateral U.S. Treasuries in cash to reduce the risk of "decoupling" and using Treasury interest to state education funds for fiscal returns. WYST is expected to be tested until the end of the second quarter of 2025 and is scheduled to be generally available in July of the same year. According to the official website of the commission, the two leaders have both financial and blockchain experience. Mark Gordon, who has been governor of Wyoming since November 2018, has signed more than 30 pieces of legislation involving cryptocurrencies, blockchain, and digital assets. He was Wyoming State Treasury Secretary (2012–2019). Anthony Apollo was appointed as the first executive director of the Stablecoin Committee in September 2023 and has extensive experience in traditional finance (KPMG, EY) and the blockchain industry (ConsenSys, Rensa). It is worth mentioning that Cynthia Lummis, who supports the Bitcoin National Strategic Reserve, is also a Senator from Wyoming. On March 27, the Wyoming Stablecoin Board's X platform account also posted a photo of Anthony Apollo, executive director of the board, and Bo Hines, executive director of the President's Digital Asset Advisory Council, with the caption, "We look forward to continuing the dialogue with governments that support digital asset management in the coming years." Stablecoin or CBDC? Although the committee stressed that WYST is not issued by a central bank and is essentially different from a central bank digital currency (CBDC), the project has received some sensitive treatment in US Republican circles. On March 27, after the latest progress on the WYST program was announced, Republican Tom Emmer, the majority whip of the U.S. House of Representatives, made a rare public criticism of his own party colleagues' moves. "I respect the vote of the people of Wyoming, however, I personally strongly oppose any government issuing a tokenized version of its currency," Tom Emmer told the media. "At the federal level, this will be considered a central bank digital currency." Central bank digital currencies (CBDCs), the digital version of the nation's fiat currency, have become the most feared "monster" for Republican politicians in recent years. Both Republican governors and President Trump are committed to banning the development of CBDCs in the United States because they are considered a threat to user privacy. Unlike decentralized crypto assets, CBDCs are issued and managed by a central authority, have the ability to freeze and track funds, are considered to be censorship resistant, and may be used by the government to interfere with personal finances. In this regard, Apollo adamantly denies that WYST is equated with CBDC. He said he was also opposed to the concept of a state-backed CBDC, but WYST was a completely different product. "Wyoming takes privacy very seriously," Apollo said. "We're going to have rules that spell out what we can and can't collect, what we do with that data, and how we act on it." "Wyoming is not a central bank," Apollo added. "We didn't issue any cash." However, Apollo also admits that the public and lawmakers frequently question whether WYST is equivalent to a CBDC. Within Wyoming, the issue is also getting a lot of attention. Just a few weeks ago, Governor Gordon had just signed a bill banning the development of CBDCs within the state, clearly expressing the state's opposition to "controlled digital currencies." Crypto Legislation Pioneer State: Actively Embracing Bitcoin, 4 Related Bills Have Been Introduced This Year Wyoming is not the first time blockchain legislation has attracted attention. Over the past decade, it has continuously advanced friendly legislation in the field of digital assets. Since 2019, the state legislature has passed more than 30 related bills. This year, pro-crypto lawmakers introduced four more core bills: HB 201: State Funds to Invest in Bitcoin by Republican Rep. J...
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Why did the multi-chain stablecoin WYST created by Wyoming, USA face doubts from Republican colleagues?
Wyoming is exploring new avenues for the development of digital currencies in the United States. The state launched WYST, the nation's first stablecoin issued by a public entity, and has entered the testing phase. However, the move sparked controversy within the Republican Party about the risks of CBDCs. This article explores the current state of WYST, policy challenges, and future prospects. (Summary: How to read the FSC's version of the draft "Encryption Law"? Banks issue NTD stablecoins? If the public has comments, leave an online message) (Background supplement: The Trump family's new crypto layout: can the USD1 stablecoin stir up the market? At the DC Blockchain Summit in March, Anthony Apollo, executive director of the Wyoming Stablecoin Council (Wyoming Stable Token Commission), hosted a special fireside chat with Mark Gordon, the state's governor and chairman of the Stablecoin Commission. Apollo officially announced that the Wyoming stablecoin WYST has entered the testing phase on multiple blockchain networks, saying that it is the first fiat-backed and fully reserved stablecoin issued by a public entity in the United States. The stablecoin committee plans to launch WYST on publicly visible blockchains, including Avalanche, Solana, Ethereum, Arbitrum, Optimism, Polygon, and Base. These preliminary, worthless test tokens have been deployed on the testnet in partnership with token issuance partner LayerZero. Nevertheless, the plan was subsequently questioned by senior Republican politicians, raising concerns about Wyoming's establishment of a CBDC (central bank digital currency). Wyoming takes the lead in testing the waters, the nation's first public entity stablecoin The Wyoming Stablecoin Council was established in March 2023 under the Wyoming Stablecoin Act. The task is to issue stable tokens that are fully backed by state laws and fiscal responsibilities. Its mission is to enhance financial transparency through blockchain innovation while driving economic growth. In the official announcement, the Commission noted that LayerZero's OFT (Omnichain Fungible Token) standard and extensive experience in secure smart contract development provide a robust, scalable suite and compliant solution that meets the Commission's legislative requirements for a multi-chain stablecoin. As part of preliminary testing, a third-party cross-chain bridge powered by LayerZero StarGate.io conducted a WYST demo transaction between Ethereum and the Avalanche testnet. WYST's architecture as an OFT means that it can be bridged over any compatible interface — StarGate.io is just one example. During the fireside chat, Governor Gordon highlighted Wyoming's commitment to transparency and innovation, noting the potential of blockchain technology in building a secure and efficient financial ecosystem. "We are excited to share Wyoming's vision of state leadership in the nation's capital," Gordon noted. "Our forward-thinking approach to blockchain and digital asset legislation has made Wyoming a model not only for other states, but also for the federal government." Gordon added that WYST has several advantages: including having to over-collateral U.S. Treasuries in cash to reduce the risk of "decoupling" and using Treasury interest to state education funds for fiscal returns. WYST is expected to be tested until the end of the second quarter of 2025 and is scheduled to be generally available in July of the same year. According to the official website of the commission, the two leaders have both financial and blockchain experience. Mark Gordon, who has been governor of Wyoming since November 2018, has signed more than 30 pieces of legislation involving cryptocurrencies, blockchain, and digital assets. He was Wyoming State Treasury Secretary (2012–2019). Anthony Apollo was appointed as the first executive director of the Stablecoin Committee in September 2023 and has extensive experience in traditional finance (KPMG, EY) and the blockchain industry (ConsenSys, Rensa). It is worth mentioning that Cynthia Lummis, who supports the Bitcoin National Strategic Reserve, is also a Senator from Wyoming. On March 27, the Wyoming Stablecoin Board's X platform account also posted a photo of Anthony Apollo, executive director of the board, and Bo Hines, executive director of the President's Digital Asset Advisory Council, with the caption, "We look forward to continuing the dialogue with governments that support digital asset management in the coming years." Stablecoin or CBDC? Although the committee stressed that WYST is not issued by a central bank and is essentially different from a central bank digital currency (CBDC), the project has received some sensitive treatment in US Republican circles. On March 27, after the latest progress on the WYST program was announced, Republican Tom Emmer, the majority whip of the U.S. House of Representatives, made a rare public criticism of his own party colleagues' moves. "I respect the vote of the people of Wyoming, however, I personally strongly oppose any government issuing a tokenized version of its currency," Tom Emmer told the media. "At the federal level, this will be considered a central bank digital currency." Central bank digital currencies (CBDCs), the digital version of the nation's fiat currency, have become the most feared "monster" for Republican politicians in recent years. Both Republican governors and President Trump are committed to banning the development of CBDCs in the United States because they are considered a threat to user privacy. Unlike decentralized crypto assets, CBDCs are issued and managed by a central authority, have the ability to freeze and track funds, are considered to be censorship resistant, and may be used by the government to interfere with personal finances. In this regard, Apollo adamantly denies that WYST is equated with CBDC. He said he was also opposed to the concept of a state-backed CBDC, but WYST was a completely different product. "Wyoming takes privacy very seriously," Apollo said. "We're going to have rules that spell out what we can and can't collect, what we do with that data, and how we act on it." "Wyoming is not a central bank," Apollo added. "We didn't issue any cash." However, Apollo also admits that the public and lawmakers frequently question whether WYST is equivalent to a CBDC. Within Wyoming, the issue is also getting a lot of attention. Just a few weeks ago, Governor Gordon had just signed a bill banning the development of CBDCs within the state, clearly expressing the state's opposition to "controlled digital currencies." Crypto Legislation Pioneer State: Actively Embracing Bitcoin, 4 Related Bills Have Been Introduced This Year Wyoming is not the first time blockchain legislation has attracted attention. Over the past decade, it has continuously advanced friendly legislation in the field of digital assets. Since 2019, the state legislature has passed more than 30 related bills. This year, pro-crypto lawmakers introduced four more core bills: HB 201: State Funds to Invest in Bitcoin by Republican Rep. J...