The following is a guest editorial from Kelly Lammers, Director of the Nebraska Department of Banking and Finance. The views and opinions expressed are those of the author and do not necessarily reflect the official policy or position of Silicon Prairie News, its staff or its affiliates. We welcome diverse perspectives and encourage open dialogue on the topics that shape our startup and innovation community.

More than a century-and-a-half ago, the pioneers who settled Nebraska braved the hardships of the Great Plains and the uncertainty of an unfamiliar land. Using the resources available, they relied on innovation and grit to transform what some called the “Great American Desert” into the nation’s breadbasket.

A similar story is unfolding in 2025 – this time in the financial sector as Nebraska leads the way with a first-in-the-nation approach to digital assets as a payment tool.

The end result will mean more certainty and convenience for both consumers and businesses. When the dust settles, we will likely see one of the biggest changes in the financial industry since the wide-scale rollout of ATMs during the 1980s.  

Nebraska’s Digital Assets Law

Let’s first provide some background.

Under the leadership of Governor Jim Pillen, the Nebraska Department of Banking and Finance has been working to implement the groundbreaking Nebraska Financial Innovation Act (NFIA), which aims to give consumers and businesses better control of their money in the modern era. Specifically, the act authorizes the creation and regulation of digital asset depositories, which enable the use of digital assets for payment purposes.

Without going too far into the weeds, a digital asset is an electronic unit of value that can be owned or transferred. Ownership history is recorded on the blockchain, which records transactions across a network of computers.

When we mention digital assets or blockchain, many people think of Bitcoin. But just as important to financial innovation are assets called “stablecoins,” which are designed to maintain a steady value. While some cryptocurrencies fluctuate wildly in price, a stablecoin should always be tradeable or redeemable for the same price – and under the Nebraska model, the cash to back that stablecoin is always in the bank. 

How the Law Benefits Nebraskans

The Nebraska Financial Innovation Act authorizes the establishment of a state-chartered digital asset bank, which, among other things, can create or “mint” a stablecoin. This paves the way for a new type of financial transaction in our traditional banking system – one in which all parties immediately know that the funds are sufficient and readily available. Previously, this was only possible when dealing in cash. 

Under Nebraska law, for every stablecoin issued by a state-authorized digital asset depository – and held in a digital wallet – a corresponding U.S. dollar must be held in an FDIC-insured bank account or in a U.S. Treasury investment. 

This common-sense approach doesn’t pit digital asset payments against traditional banking. Instead, it complements our community banks by providing new, innovative financial services in a secure manner.

This also ensures that money owed is always in the bank. It is the modern version of the traditional checking account, except this form of payment will clear in seconds or minutes – and will never bounce.

Other benefits of this digital-asset payment technology include:

• Reduced need to carry cash or wait for a check to clear when making a big-ticket transaction.
• Increased efficiency and potentially lower fees for select types of transactions. 
• More fee disclosures and transparency.
• Enhanced security and privacy compared to many other payment types.

An Incentive for Business

The Nebraska Financial Innovation Act, initially championed by then-State Senator Mike Flood, combined with today’s emerging payment technology, could very well result in significant business activity. With Nebraska’s approach, companies and entrepreneurs can rest assured that overdrafts and bounced checks won’t occur with digital asset accounts.

So our message to the industry is simple: Nebraska is open for your business.

At the same time, safeguards will be in place to ensure that bad actors aren’t trying to manipulate the banking system. There will also be protections for the redemption of stablecoins for dollars – similar to what’s in place now when cashing a check.

Nebraskans have always innovated and adapted to ensure a brighter future. This is simply the latest chapter of the Cornhusker State’s pioneering spirit. Our department is proud to play an important role in NFIA’s implementation and to help shape Nebraska’s financial future.