The state of Wyoming plans to establish a Cryptocurrency Bank, to boost the state’s potentials of becoming a haven for the cryptocurrency industry and also combat economic discrimination in the United States of America.
The Wyoming Crypto Bank Project
Tyler Lindholm, a Wyoming state legislator and also a co-chair of the state legislative committee on blockchain stated there plans to start up a crypto bank in the state. This was reported by the Casper Star-Tribune, one of the prominent newspaper in the state.
Tyler noted that the project would be instrumental in eradicating discriminatory policies of some financial institutions towards cryptocurrency enthusiasts and crypto oriented businesses. Also, this is envisaged to aid the needed growth of the state economy.
Prominence Of Economic Discrimination
Cryptocurrency adoption has seen stagnation due to the wariness of the traditional financial institutions to adopt the nascent industry fully. This is because of its tag as a tool for illegal users, prone to manipulation and volatility. However, a continuous effort has been seen in recent time from private firms, states, and financial institutions such as Goldman Sachs to bring the much-needed trust into space.
Despite efforts, as noted by Tyler, many traditional banks still maintain a tough stance on its relationship with cryptocurrency. Tyler further stated that an individual bank account could get frozen instantly for involvement in cryptocurrency trade, which showcases an act of discrimination.
A recent notable case of such is the shutting down of the business and personal account of a U.K.-based cycling merchant, Scott Snaith for its involvement in cryptocurrency transactions on a cryptocurrency exchange.
The Crypto Bank Project and Benefits
The Wyoming legislators initiate the cryptocurrency bank project. The bill aims at creating a depository institution that is specially designed for transacting and storage of digital asset.
This will not take the form of a vault door or teller, but regulated accounts that will aid crypto oriented firms to operate in the state optimally. The crypto bank asset is to be backed by cash or bank authorized investments.
The crypto bank function was noted by Tyler to surpass the traditional banks. The traditional bank is mostly involved in letting customers cash checks and apply for loans. But the crypto bank as stipulated in the bill will enable crypto businesses to engage in the fiat denominated market.
Further, Tyler stated that the project is a cost-effective way to enhance the growth of crypto businesses in Wyoming. A step to show the support of the state for cryptocurrency amid the indecisive stance of the US SEC.