Small town in big city shoes. Wyoming is set to debut its stablecoin by the end of 2022.
What about technology: Would the Wyoming stablecoin be built on the Ethereum platform, as have many but not all stablecoins?
“This is not a new currency — this is the tokenization of the U.S. dollar,” Rothfuss told us. As such, it shouldn’t violate Article I, Section 8 of the U.S. Constitution which provides that only Congress shall have the power to “coin money and regulate the value thereof.” Congress could technically enforce the provisions of Article I using its Necessary and Proper Clause powers to “prevent states like Wyoming from issuing stablecoins because this could tamper with existing regulations of interstate commerce,” added Dilendorf. decision and Congress’ plenary powers under the NPC, “it seems that Congress could regulate and put a stop to the issuance of state-backed stable coins,” Dilendorf concluded.
“The next likely place you’ll probably see this is at the city level, a place like Miami or New York City,”, said Grey. Wyoming appears to be far out ahead of other U.S. states, but a second place “where it could happen is Texas,” he opined. For one thing, a publicly issued stablecoin would probably have more “procedural transparency,” though even a state player might eventually migrate away from having 100% U.S. treasury-bill reserves. Still, “It’s unlikely that everything will happen behind closed doors” as occurs with privately issued stablecoins.