PANews reported on May 16 that, according to Cointelegraph, the Northern Mariana Islands, a U.S. Pacific territory, passed a bill allowing Tinian Island to issue a stablecoin, overturning Governor Arnold Palacios's veto on April 11. The bill passed the House with 14 votes in favor and 2 against, after the Senate had previously reconsidered it on May 9 with 7 votes in favor and 1 against. According to the bill, the Tinian Island government can issue, manage, and redeem the stablecoin "Marianas US Dollar" (MUSD) with the authorization of the finance minister. If issued before July, Tinian Island may become the first U.S. public entity to issue a stablecoin, ahead of Wyoming, which also plans to issue a stablecoin.
With a population of just over 2,000 and an economy dependent on tourism, Tinian Island is one of the four autonomous municipalities of the Northern Mariana Islands federal government. The island has selected the local technology service company Marianas Ray as the exclusive infrastructure provider for MUSD, with the stablecoin to be issued on the eCash blockchain. A spokesperson for Marianas Ray declined to comment, only stating that more details would be announced on May 19.
