Wyoming, the beautiful constituent state of the United States, is gearing up to welcome around five blockchain banks by summer 2020. A local site, Wyoming Business Report published that this crucial development is likely to bring as much as $20 billion in assets as applications open for the unique bank charter October 1.
Earlier in 2019, Wyoming outshined as the first state in the nation to serve the unexplored financial markets by passing a law for the setting up of “Special Purpose Depository Institutions” in its territory. The ‘unreserved’ financial sector included cryptocurrency, blockchain, coal, paycheck lending, and firearms. The lawmakers are currently giving their best inputs in drafting out the details of the law.
Caitlin Long, a member of the Wyoming Blockchain Task Force through an email stated that “I heard a fun phrase this week that an East Coast state is aspiring to copy us and be the ‘Wyoming of the East’ for digital assets.” The Task Force is spearheading in sculpting out the SPDI law and an array of other blockchain-focused bills.
The new entities which have shown their interest in the project are unofficially addressed to as SPDI banks. The five firms are likely to contribute around $4 million as tax revenues as the territory finds it difficult to achieve the objective with its staggering budget. One of the prominent names which have given its nod for the charter is San Francisco based crypto exchange, Kraken.
“It’s the first time we’ve been willing to make such a projection, but I have sufficient visibility into it at this point,” stated Long.
Long made a sharp comparison of the crypto-related rules to South Dakota’s efforts to bring about a change in the laws in the early 1980s which eventually gave a boost to the economy during the recession period as it attracted new investors.
This charter project is surely not a sure thing as it will take around nine months for the chartering process to complete, and two of the involved institutions are requesting for technical changes in the law.
However, Caitlin Long is quite confident about the project despite the numerous uncertainties. The lady said, “the pipeline is real, and the opportunity is Wyoming’s to grab.”
Caitlin is hopeful that the new banks which will undoubtedly be different from the traditional ones will bring in a substantial rise in the employment rate.
Wyoming’s leading crypto champion, Caitlin Long some time back also mentioned in one of her tweets that Facebook’s cryptocurrency will most likely pay interest to its users. Her predictions came in as a surprise for many during that part of the year. She even predicted that the social media giant’s GlobalCoin would have to have critical regulatory measures which at present hold true in every sense.