The state of Wyoming has recently passed a blockchain bill that allows banks to provide banking services to blockchain companies based in the state.
The legislative document has this to say, the new bill would create a new banking category dubbed the Special Purpose Depository Bank, a group of financial institutions within the state that provides banking services for blockchain related businesses.
Fortunately, the bill was successfully passed unanimously by the state’s legislative committee 13-1, and it searching for ways to deal with the currently problems blockchain business are undergoing in the state.
“The rapid innovation of blockchain technology, including the growing use of virtual currency and digital assets, has resulted in many blockchain innovators being unable to access secure and reliable banking services, hampering the development of blockchain services and products in the marketplace,” the document says.
Traditional banks have been quite hostile when it comes to blockchain companies in the “Equality State,” denying them of security and reliable banking services to blockchain-related businesses due to how strict banking regulations are governed in the state.
“Authorizing special purpose depository banks to be chartered in Wyoming will provide a necessary and valuable service to blockchain innovators, emphasize Wyoming’s partnership with the technology and financial industry and safely grow this state’s developing financial sector,” the document states.
This means that banks under this category will have to maintain equal reserves with the value of the deposits stored, which is above the fractional reserves kept by traditional banks, to prevent money laundering and fraud prevention.
As good as this news may be, it does come with hefty stipulation. Deposits kept with the Special Purpose Depository Banks will not be insured by the U.S. Federal Deposit Insurance Corporations (FDIC).
This amazing news was shared on Twitter by Caitlin Long, co-founder of the Wyoming Blockchain Coalition, a group that known for advocating the adoption of blockchain technology in the state. One interesting thing to note from the tweet is that the bill was passed despite ” heavy opposition” from the banks.
BREAKING! #Wyoming legislative committee passed #blockchain #bank bill 13-1 over heavy opposition from the banking industry. Congratulations and thanks to all out supporters! pic.twitter.com/nQDjALykRk
— Caitlin Long (@CaitlinLong_) November 30, 2018
With States like Wyoming and people like the blockchain coalition championing for the technology to flourish, it’s going to be quite interesting to see if any more future entrepreneurs will be willing to start up their own blockchain related businesses in Wyoming.
What do you think of this passing bill? Does it instill hopes for other states to pass along friendly blockchain related bills?
Let us know your thoughts.