Wyoming is one of the leading states in the US that is entering the cryptocurrency and blockchain world. The announcement that it is rolling out its own stablecoin (FRNT) garnered a good deal of attention. This is a process that is moving forward.
Now, we get word that the testnet is set up. Anyone with a digital wallet and connect. By doing so, one will receive 1,000 tFRNT, a token that is being used for testing purposes. The state was firm in its announcement that tFRNT has no monetary value.
Apollo also mentioned that anyone with a digital wallet can now connect to their website and then select one of 8 testnets. After that, they can request up to 1000 “tFRNT” every 24 hours to their public address.
What does this mean for the future?
That is what we will dive into within this article.
Wyoming Sets Up Testnet For Its Stablecoin
It will be interesting to see a state enter the stablecoin race.
Thus far, we have two major categories. The first is private institutions such as Circle, Tether Foundation, and PayPal. At the same time, we have decentralized entities using both algorithmic or synthetic "dollars".
Wyoming is the first non-federal entities within the US to opt for this path. By offering its own stablecoin, the state hopes to maintain some sovereignty from the controls of the Federal government (and The Fed).
What is interesting is the state is acting in accordance to the law passed earlier this year where the backing of the token is done via US Treasuries.
The state is looking to integrate Web3 technologies. Moving away from the established system is a value that drives many within the state. The fact that conducting transactions is not difficult is reducing the learning curve.
Although these digital tools and resources can be beneficial, it is also worth highlighting that it is not at all difficult or even confusing to complete simple stablecoin transactions. User interfaces have been made very intuitive and even new or less experienced web3 developers can actually get started with relative ease.
Development could inspire other states to follow suit. Infrastructure process is rapidly expanding. Web3 is not a novel concept. A lot of work went into the coding so far. Applications are plentiful with supporting docs providing assistance.
Moreover, rapid AI advancements have made software development a lot easier, faster, and more reliable. It was a lot more difficult to create software apps that were highly technical or sophisticated 20 or even 10 years ago. But now, with the rise of AI and other digital technologies, it is not at all difficult to get started with stablecoins. There are also a very wide range of development environments, programming languages, and pre- configured software packages that can make many aspects of the process as simple as “plug and play.”
Everyone Will Be Involved
Stablecoins are going to becoming markets pieces.
Ultimately, we are going to see thousands of these rolled out. There will be leaders such as Bank of America (if they bring one out). Since it is the leading bank in regards to deposits, a BAC coin could be heavily utilized. There will be niche coins provided by smaller entities. Then we will have states and other entities entering the mix.
Down the road, we will see the backend systems processing these coins seamlessly. It will look at one stablecoin the same as another. I would expect the pegs to be stronger since it will be spread across the entire spectrum. No longer is it the price of USDC standing alone. When it is effectively tied to every other stablecoin, it is really just a token for the USD.
That is what stablecoin issuers hope to achieve.
These are the "killer dapp" that everyone in crypto long sought. Of course, how decentralized this is can be debated, with many leaning towards very little. The way present regulation is structured, I have to agree.
It is a bit ironic that states within the US might end up negating this a bit since they are not under the same laws as commercial stablecoin issuers. Wyoming opted to structure the backing of FRNT the same as Federal law. It was not obligated to go that route.
For the moment, the testnet is running. That means we will likely see the release of the FRNT token early next year. How much adoption is garners remains to be seen. I would expect entities such as Coinbase to accept them, offering an easy on-ramp to the token.