A Bold First from a Small Island
In a historic and controversial move, the Northern Mariana Islands has overridden a gubernatorial veto and passed a landmark bill allowing Tinian, one of its municipalities, to launch its own stablecoin: the Marianas US Dollar (MUSD). The legislation, initially vetoed by Governor Arnold Palacios, passed the House with a 14-2 vote after previously receiving two-thirds support in the Senate. The bill gives Tinian’s treasurer the authority to issue, manage, and redeem MUSD, which will be backed by cash and U.S. Treasury bills held in the Tinian Municipal Treasury.
The clock is ticking: if Tinian can launch MUSD before July 2025, it will officially become the first U.S. government entity — ahead of Wyoming — to issue a government-backed stablecoin.
Why This Matters
Tinian, home to just over 2,000 residents and relying mostly on tourism, sees this move as a chance to revive its struggling economy. The MUSD will be built on the eCash blockchain, a fork of Bitcoin Cash, with Marianas Rai Corporation as its exclusive infrastructure partner.
Crypto Meets Controversy
While the bill was pushed forward by lawmakers hoping to unlock digital revenue, not everyone was on board. Governor Palacios warned that the bill could be unconstitutional, citing legal ambiguities and inadequate safeguards against illegal gambling.
The legislation also licenses internet casinos, a move that has stirred cultural and regulatory concerns, particularly in a tight-knit island community wary of past controversies tied to gambling.
Billion-Dollar Promises?
Crypto entrepreneur Vin Armani, co-founder of Marianas Rai Corp, claimed the bill could attract billions in investment and tax revenue from the global crypto market — all without costing the government a cent. Still, no firm launch date for MUSD has been set, though the tech firm promises more details on May 19. With Wyoming also eyeing a stablecoin launch, the race is now officially on.
