Tinian, a small island in the US territory of the Northern Mariana Islands, is on the verge of potentially becoming the first US public entity to issue a stablecoin. This opportunity comes after the Northern Mariana Islands Senate voted 7-1 to override Governor Arnold Palacios' earlier veto of a bill that would allow the Tinian local government to issue licenses to internet casinos and introduce a provision for the creation of a "Tinian Stable Token."

Following the Senate's decision, the bill will now move to the 20-member Northern Mariana Islands House, where it will require a two-thirds majority vote to override the veto and become law. If successful, Tinian could beat the state of Wyoming in the race to issue a stablecoin, with Wyoming aiming to launch its stablecoin by July.

Tinian, governed by the Municipality of Tinian and Aguiguan, is one of four municipalities in the Commonwealth of the Northern Mariana Islands. With just over 2,000 residents, Tinian's economy heavily relies on tourism.

Despite concerns raised by Governor Palacios about the bill's legality and constitutionality, Republican Senator Karl King-Nabors, who represents Tinian and co-authored the bill, believes that the stablecoin would provide a more stringent and efficient way to regulate online gaming activities on the island. He emphasized that the stablecoin would enhance transparency within the Tinian Casino Gaming Control Commission.

The introduction of the bill in February by Republican Senator Jude Hofschneider aimed to amend local laws to permit internet-only casino licenses and enable the issuance of a fully backed US dollar-pegged stablecoin named the Marianas US Dollar (MUSD). This stablecoin would be backed by cash and US Treasury bills held in reserve by the Tinian Municipal Treasury.

The exclusive infrastructure provider for the issuance and redemption of MUSD is the tech services firm Marianas Rai Corporation, based in Saipan, the capital of the Northern Mariana Islands. The stablecoin operates on the eCash blockchain, a network that rebranded from Bitcoin Cash ABC in 2021.

With potential partnerships in the pipeline, Marianas Rai Corp. is poised to act swiftly following the Senate's decision. Additionally, as the US Congress considers passing stablecoin regulations, the timing could be favorable for Tinian to establish itself as a pioneer in the stablecoin market.

The move towards issuing a stablecoin aligns with Tinian's efforts to diversify its economy, especially in the face

Source: https://cointelegraph.com/news/tinian-stablecoin-bill-comeback-mariana-senate-override-veto?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound