Blockchain Bank Bill Passes 13-1 In Wyoming, Only To Be Met With Continued Opposition

Blockchain Bank Bill Passes 13-1 In Wyoming, Only To Be Met With Continued Opposition

Cryptocurrency has been highly debated in the US, and there are plenty of states taking it into their own handles. The Wyoming Blockchain Coalition, for example, has been working with the courts to make blockchain technology into a bank-friendly resource.

Specifically, their website states that their main goal is,

“to educate Wyoming citizens about the power of blockchain technology to cut costs, streamline administrative processes and spur entirely new businesses in Wyoming.”

As they’ve pursued changes in the state government’s legislation, they seem to have been victorious in their latest endeavor – a crypto friendly bank.

On November 30^th, advisor Caitlyn Long posted some breaking news to her Twitter account:

BREAKING! #Wyoming legislative committee passed #blockchain #bank bill 13-1 over heavy opposition from the banking industry. Congratulations and thanks to all out supporters! pic.twitter.com/nQDjALykRk

— Caitlin Long 🔑 (@CaitlinLong_) November 30, 2018

The battle to make this into a reality has been drawn out for a while, which seems to primarily be due to how resistant the banking industry has been to adopting it.

However, the approval, as representative Tyler Lindholm puts it,

“comes down economic diversification. Wyoming has really concentrated on that over the past two years.”

Continuing, Lindholm said,

“We’ve been looking at different technologies, new ways to expand. After doing some research and reaching out to some industry experts, it was blockchain, digital currencies, and ICOs that stuck out. Looking at the situation, it was clear that no state had taken the plunge on any kind of regulatory frameworks, particularly regulatory frameworks that were beneficial and would attract those kinds of businesses. We want economic diversification. We want tech jobs. More importantly, we want new and young businesses to consider Wyoming.”

The new legislation makes it possible to serve the public in a new way, allowing both crypto and blockchain firms to operate easily. Traditional financial institutions seem to feel threatened by this concept, despite the fact that the crypto bank would be at a disadvantage to some degree. For instance, this new bank wouldn’t give out loans, and would need to maintain equal liquidity with the value of the crypto assets they store. There’s no security from the U.S. Federal Deposit Insurance Corporation, and they would have to abide by Wyoming’s Division of Banking. Essentially, it would be more of a happy medium between traditional banking and cryptocurrency wallets or platforms, which would be run by board members from the industry after a vote.

Wyoming has been fairly progressive and welcoming to the crypto industry, going as far as enacting multiple laws back in March 2018 that made it possible for citizens to use cryptocurrency, defining what qualifies as a utility token and even exempting them from the Wyoming Money Transmitter Act, which would require businesses to be licensed. Perhaps this is one of the many reasons why traditional financial institutions have been so resistant to their addition.