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Wyoming targets establishment of blockchain-friendly bank to attract cryptostartups

Wyoming targets establishment of blockchain-friendly bank to attract cryptostartups
Oct 2, 2018 by Rico Wise

The lawmakers of Wyoming are in the process of consideration regarding drawing up laws, which would enable the establishment of a cryptobank to accommodate the needs of the digital currency and blockchain-related companies with the state. In the course of a recently held blockchain task force meeting, shareholders have considered draft laws, which would provide a safe haven for the “special-purpose depository institutions” in terms of regulatory framework.

The task force consists of representatives and senators of Wyoming, including technical appointees, such as a blockchain enthusiast and Wall Street veteran, Caitlin Long.

A cryptocurrency banking institutions would facilitate the operations of digital currency and blockchain companies in Wyoming, which are currently suppressed by conventional financial institutions. The current state of affairs is such that whenever a bank finds out that its customer is involved with digital currencies or blockchain in any way, such bank account get instantaneously shut down, which significantly discriminates a wide array of businesses.

Generally, the objective of the crypto-friendly bank would be the provision of assistance in processing of transactions and storing both digital and fiat currency for digital currency companies, enabling their operations in an environment, which still relies dominantly on fiat currencies and banks are reluctant when it comes to servicing BTC businesses.

It should be noted that the digital currency depository establishment would not be a bank in its conventional sense, simply because it would not be eligible to give loans. Additionally, the cryptobank of Wyoming will have to make sure that the ratio of digital currency to liquid funds is maintained at 100 percent, while conventional banking institutions are able to work on a fractional-reserve basis.

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