States Push Stablecoins Into Muni Finance as Critics Say 1 State Token Distracts Modernization
Updated
Updated · Bond Buyer · Jul 20
States Push Stablecoins Into Muni Finance as Critics Say 1 State Token Distracts Modernization
1 articles · Updated · Bond Buyer · Jul 20
Summary
Municipal market participants say state crypto projects are pulling focus from more urgent upgrades such as standardized filings, interoperable documents and cleaner reference data for issuers, investors and agents.
Wyoming, the only state with a live state-backed stablecoin, says its token is meant to diversify revenue by investing reserves in short-term Treasuries and repos, with interest earmarked in part for public schools.
North Dakota plans its own token this year for bank-to-bank transfers only, while Ohio is building a broader digital wallet after suspending its 2018 crypto tax-payment program in 2019 because few people used it.
Moody's warned that if all 50 states create their own stablecoins, the system could become fragmented, making interoperability and governance critical before digital assets play a larger role in public finance.