Wyoming’s recent announcement of its first state-issued stablecoin, the Wyoming Stable Token (WST), has ignited controversy within the blockchain community. Notable figures like Cardano founder Charles Hoskinson have accused the selection process of bias and unfairness.
XRP and Wyoming https://t.co/uztrsGNtxT
— Charles Hoskinson (@IOHK_Charles) November 25, 2024
The Omission Of Prominent Chains
The Wyoming Stablecoin Commission’s decision to overlook prominent blockchains like Cardano, Ripple, Bitcoin, and Algorand has raised eyebrows. While chains like Ethereum, Solana, Avalanche, Stellar, and Sui made the cut, the exclusion of these well-established networks has sparked questions about the selection criteria.
Hoskinson Points to Opaque Process and Conflict of Interest
Hoskinson has criticized the lack of transparency in the selection process, highlighting the involvement of a small group with ties to Consensys and Circle. He argues that this lack of public evaluation and potential conflicts of interest have led to an unfair outcome.
Ripple’s Superiority Over Stellar Questioned
The selection of Stellar over Ripple has been particularly contentious. Hoskinson has pointed to Ripple’s established ecosystem, significant trading volume, and advanced payment settlement capabilities as reasons for its exclusion to be unjustified. He likened the decision to choosing Litecoin over Bitcoin, suggesting a lack of logical reasoning.
The omission of Bitcoin, the world’s largest cryptocurrency, has also been questioned. Given Wyoming’s strong ties to the crypto industry and Bitcoin’s potential as a Treasury reserve asset, its exclusion seems puzzling.
Calls for Legal Action and Community Advocacy
Hoskinson has urged the excluded blockchains to pursue legal action against the Wyoming Stablecoin Commission. He believes that such actions are necessary to prevent the creation of an uneven playing field for digital assets in the United States.
Furthermore, he has called on the Cardano and Ripple communities to actively engage in advocacy efforts. This includes advocating for a transparent government procurement process and pushing for the inclusion of their respective blockchains in future projects.
The controversy surrounding the Wyoming Stablecoin selection highlights the importance of fair and transparent processes in the adoption of blockchain technology. As more states and governments explore the potential of blockchain, it is crucial to ensure that decisions are made based on merit and avoid bias.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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