Rep. Tom Emmer says the so-called WYST is just another state CBDC

House Majority Whip Tom Emmer (R-MN) strongly criticized Wyoming’s plan to issue its own stablecoin, WYST, on Thursday. He called it nothing more than a state version of a central bank digital currency. 

Emmer made his stance clear during an interview with Decrypt. “I respect the vote of the Wyoming people, however, I personally am vehemently against any government issuing a tokenized version of its currency,” he said.

“At the federal level, this would be considered a central bank digital currency.” His comments show that there are significant disagreements within the party about how to handle digital currencies.

On Wednesday, Wyoming’s Republican Governor Mark Gordon announced that the state is planning to launch its stablecoin, WYST, as soon as July. 

At the recent DC Blockchain Summit Governor Gordon along with Anthony Apollo, the executive director of Wyoming’s Stable Token Commission, stressed that the new token is meant to serve as a digital equivalent of the U.S. dollar while avoiding the pitfalls of a CBDC.  

People associated with the project believe that a government-backed digital asset could offer lower fees and greater flexibility in transactions, even for sensitive purchases such as firearms.

Officials behind the Wyoming project insist that WYST is not a CBDC.

Apollo said, “Wyoming cares significantly about privacy. We’re going to have rules in place about what we can and can’t collect, how we can treat that data, and how we can act on that data.” 

He noted that the exact policies are still being ironed out and that the state might rely on a third party, such as a centralized crypto exchange, to handle data collection for the token. 

Apollo explained that, unlike CBDCs, which are digitally created by a central bank in the same way as cash, Wyoming’s stablecoin will be fully backed by reserves, including U.S. Treasuries. “Wyoming is not a central bank,” he stressed. “We are not issuing any cash.” 

By linking the token to secure assets, state officials argue that WYST avoids the inflationary risks that can be associated with government-issued digital currencies.

The controversy over Wyoming’s digital assets is further fueled by recent legislative moves in the state. Just weeks ago, Governor Gordon signed a bill that prohibited the development of a CBDC in Wyoming. 

The bill’s sponsor explained that the legislation was designed “to send a clear message to Congress that Wyoming rejects the idea of essentially controlled digital currency.”

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