"Hoskinson Slams Wyoming's Stablecoin Plan: Lack of Transparency, Favoritism Alleged"

Charles Hoskinson, the founder of Cardano and CEO of Input Output Global (IOG), has criticized Wyoming's plan to develop a state-backed stablecoin, alleging a lack of transparency in the procurement process. In a livestream on February 4, 2025, Hoskinson argued that the state failed to publish or share a detailed product requirements document (PRD) outlining key features, such as the ability to freeze or seize tokens under certain legal or regulatory conditions. This omission, he believes, prevents fair competition and poses risks to user privacy and broader blockchain adoption.

Hoskinson contends that Wyoming's selection criteria were only disclosed after the fact, giving companies less than five days to prove they could meet the freeze-and-seize requirement. He argues that the Cardano ecosystem could have implemented such a feature in approximately two weeks if it had been explicitly included in the PRD from the outset. To highlight Cardano's capabilities, Hoskinson contrasts fully programmable blockchains like Cardano and Ethereum with so-called "fixed-function" ledgers, such as XRP. Programmable chains allow developers to build new features directly into smart contracts, meaning a freeze-and-seize capability can be added if required.

Hoskinson points to a mischaracterization by officials overseeing Wyoming's stablecoin project, who had stated that Cardano did not meet this criterion without clarifying the short timeline or undisclosed requirements. Throughout the video, he implies that the process may have been orchestrated to favor a particular blockchain solution, suggesting that one of the decision-makers previously worked with the platform being singled out for the project. He underscores that no open bidding or public discussion took place on the critical features of the stablecoin.

Hoskinson also critiques the idea that Wyoming's stablecoin would be functionally similar to a central bank digital currency (CBDC) because of its freeze-and-seize feature and transparent ledger, warning that this undermines financial privacy. In his view, this architecture gives authorities—or even third parties—the power to monitor all transactions and freeze funds at will. He questions the logic of investing state resources to build a product that, in his estimation, competes head-on with more established players, such as Tether or Circle, which have far larger budgets and market share.

In his remarks, Hoskinson underscores the economic challenges Wyoming's stablecoin could face, citing a modest $5.8 million budget