The Northern Mariana Islands, a U.S. territory in the Pacific, recently made headlines as lawmakers passed legislation allowing the island of Tinian to issue a government-backed stablecoin. This decision came after a 14-2 vote in the Northern Mariana Islands House to override Governor Arnold Palacios’ earlier veto of the bill. The Senate had also voted 7-1 to overturn the veto, showing strong support for the legislation.
The bill authorizes the Municipality of Tinian and Aguiguan to issue a stablecoin named the Marianas US Dollar (MUSD), backed by U.S. dollars and Treasury bills held in reserve by the local treasury. This move is part of a broader economic strategy to revitalize Tinian’s struggling economy, with plans to issue licenses to internet casinos alongside the stablecoin rollout.
Marianas Rai Corporation has been chosen as the exclusive technology provider for the stablecoin, with plans to utilize the eCash blockchain, a fork of Bitcoin Cash ABC. Supporters of the bill believe that this initiative could bring much-needed revenue to Tinian without burdening the government financially. Vin Armani, co-founder of Marianas Rai Corp., emphasized the potential for attracting investment and tax revenue from the crypto sector.
Republican Representative Patrick San Nicolas sees the bill as a way to reduce Tinian’s dependence on tourism and federal subsidies, positioning it as a path to self-sustaining revenue. However, there are critics of the bill, including Governor Palacios, who vetoed it citing legal issues and lack of enforcement safeguards. Independent Representative Marissa Flores raised concerns about the bill’s association with online casinos.
If launched according to plan, MUSD could become the first government-backed stablecoin issued by a U.S. public entity, potentially beating out Wyoming, which is working towards a similar goal by July 2025. Wyoming passed the Wyoming Stable Token Act in 2023 and is currently conducting cross-chain tests on platforms like Ethereum, Solana, and Avalanche for its stablecoin.
On a national level, progress on stablecoin regulations has faced setbacks, with major federal bills like the GENIUS Act and the STABLE Act losing Democratic support due to concerns over former President Donald Trump’s involvement in crypto. Despite these challenges, the Northern Mariana Islands’ move to issue a stablecoin signals a growing interest in digital currencies at the local level.