On Wednesday, Wyoming Governor Mark Gordon told the crowd at a blockchain seminar in Wyoming that the state plans to launch a state issued stablecoin pegged to the US dollar by 2025, marking an interesting shift in the debate surrounding US stablecoins.

In a statement before the seminar, he said, "Over the past seven years, our legislative body has passed more than 40 laws to create a regulatory environment conducive to blockchain technology innovation." "The country has a unique ability to issue stable tokens that can increase the dominance of the US dollar and function as a public good

Gordon, who also serves as the chairman of the Wyoming Stable Token Commission, stated that this move is part of the state's acceptance of blockchain technology. In his speech, he pointed out that the Wyoming stable token would be supported by cash, US treasury bond bonds and repurchase agreements in reserves.

According to the Wyoming Stable Token Act, interest income generated from underlying securities will be used to diversify state revenue sources, and funds will be allocated to Wyoming's school foundation programs.

Gordon stated that once the design and support for stablecoins are finalized, the state will contact exchange partners to go public at some point in the first quarter of 2025.

He said that the motivation for Wyoming to launch its own stablecoin began with the 2007-2008 financial crisis, which was caused by the collapse of the mortgage-backed securities market and the issuance of high-risk debt instruments by institutions.

Gordon said, "During the period before 2008, capitalism was very important, which meant that bankruptcy could happen. At some point around 2008, we made a decision that the government would support policies that were too big to fail

He explained that this' too big to fail 'measure directly contradicts the spirit held by many people in Wyoming, who believe that risk is a prerequisite for actual growth. He added that Wyoming's work in this area and overall on digital assets has given the state a "first mover" advantage and prepared the state to embrace the growth brought by digital assets.

Gordon's profile states, "Adopting digital assets is crucial for maintaining America's innovative spirit

When discussing the Federal Reserve banking system, Gordon referred to it as a "drag on innovation" and emphasized the failures of the first two central banks in the United States, which were established during the Madison and Jackson administrations, respectively.

Gordon's statement sparked a debate about competition among central banks and potential conflicts between state issued US dollar tokens and the Federal Reserve Bank.

Although some people believe that each state issuing its own stablecoin is a direct competition with the Federal Reserve, Wyoming Senator Chris Rothfuss believes that state issued tokens pegged to the US dollar will not compete with the central bank, as the central bank is responsible for issuing underlying assets to support state issued digital tokens.