Northern Marianas House Overrides Governor’s Veto to Pass Stablecoin Bill

In a landmark decision, the Northern Mariana Islands House of Representatives has overridden Governor Arnold Palacios' veto, passing legislation that allows the island of Tinian to issue its own stablecoin, the Marianas US Dollar (MUSD). The bill was approved with 14 votes in favor and 2 against, following a similar override in the Senate on May 9.

The MUSD is designed to be fully backed by U.S. Treasury bills and cash held in reserve by the Tinian Municipal Treasury. It will be issued and managed by the Tinian Treasurer, with the Marianas Rai Corporation providing the necessary infrastructure on the eCash blockchain.

Governor Palacios had vetoed the bill in April, citing constitutional concerns and the lack of enforcement measures against illegal gaming. However, proponents argue that the stablecoin could provide a new revenue stream for the island's economy, which is heavily reliant on tourism.

If issued before July, Tinian could become the first U.S. public entity to launch a stablecoin, ahead of Wyoming, which also plans to issue a government-backed digital currency.