After welcoming the cryptocurrencies and blockchain technology, the American state of Wyoming moved a step further. This month, the state’s governor signed a bill which gives Wyoming’s only public university access to a fund of $4 million for a cryptocurrency staking program.
Staking – a technical term used in the crypto market – means locking up the digital assets to mint new coins and validate the transactions. This strategy is quite popular among investors in the crypto space as it allows them to make some profits while putting their digital assets to work.
Supporters of this initiative have described it as an alternative stream of income for the public institute which has been badly hit by the pandemic. The university had also been struggling with its finances before the debilitating effect of the virus set in.
Following the official approval, the state university would spend $4 million on setting up staking nodes – installing computer systems that sustain and record the crypto transactions – in at least three cryptocurrencies. Eventually, the program would develop pools for staking, allowing users to chip in coins and stake even if they don’t have any technical know-how.
Interestingly, the university plans to use the profits to further develop the crypto staking programs at the high education institutes as well as community colleges across the state.
The state of Wyoming has been a front-runner when it comes to accepting new technology. Two years ago, the local legislature passed a flurry of laws to build a welcoming framework for digital assets in the state. Interestingly, the state authorities gave the go-ahead to Avanti and Kraken to establish crypto banks to hold digital assets on customers’ behalf within the state.