tl;dr
House Majority Whip Tom Emmer (R-MN) criticized Wyoming's plan to issue its own stablecoin, likening it to a central bank digital currency (CBDC). Emmer and other Republicans have expressed concerns about the privacy implications and control over transactions associated with CBDCs. Wyoming's governo...
House Majority Whip Tom Emmer (R-MN) opposes Wyoming's plan to issue its own stablecoin, likening it to a central bank digital currency. Central bank digital currencies (CBDCs) are seen as a threat to user privacy by many Republicans, including President Trump. Wyoming's stablecoin, WYST, is claimed to be different from a CBDC, with a focus on privacy and backed by reserves like U.S. Treasuries. Wyoming's government argues that the stablecoin could offer benefits such as lower fees and funding for the state's school system. Questions arise about the role of government in issuing the stablecoin, especially given the recent bill prohibiting CBDC development in the state.
House Majority Whip Tom Emmer (R-MN) criticized Wyoming's plan to issue its own stablecoin, likening it to a central bank digital currency (CBDC). Emmer and other Republicans have expressed concerns about the privacy implications and control over transactions associated with CBDCs. Wyoming's governor and project leaders argue that the stablecoin, WYST, differs from a CBDC, emphasizing privacy protection and full backing by reserves. They also highlight potential benefits such as lower fees and funding for the state's school system. However, questions persist about the distinction between WYST and a CBDC, especially given Wyoming's recent legislation against CBDC development.
House Majority Whip Tom Emmer (R-MN) laid into Wyoming’s accelerating plans to issue its own stablecoin Thursday, issuing a rare rebuke of a fellow Republican crypto initiative. “I respect the vote of the Wyoming people, however, I personally am vehemently against any government issuing a tokenized version of its currency,” Emmer told Decrypt. “At the federal level, this would be considered a central bank digital currency.” Central bank digital currencies, or CBDCs—digital versions of a state’s fiat currency—have in recent years become a favored boogeyman of Republican politicians.
Wyoming’s government is weighing relying on a third party like a centralized crypto exchange to handle data collection for WYST. One of the chief criticisms levied against government issued tokens, though, is that whatever rules one administration makes about them, could always be changed by future ones. The topic is currently front of mind in Wyoming. Just weeks ago, Gordon signed a bill into law prohibiting the development of a CBDC in the state. The bill’s sponsor said a key purpose of the legislation was “to send a clear message to Congress: that Wyoming rejects the idea of essentially controlled digital currency.”