Lawmakers in the U.S. Commonwealth of the Northern Mariana Islands (CNMI) are reviving efforts to establish the country’s first government-issued stablecoin.
In a bold legislative move, the CNMI Senate voted 7-1 to overturn Governor Arnold Palacios’ veto of a bill that would authorize the issuance of the “Marianas USD (MUSD)”, a stablecoin pegged 1:1 to the U.S. dollar.
The legislation must now receive a two-thirds majority in the 20-member House of Representatives to become law.
If passed, the CNMI, a U.S. territory with a population of around 2,000, could surpass Wyoming, which plans to launch its own digital currency in July, and become the first U.S. jurisdiction to officially issue a stablecoin.
Democratic Congresswoman Celina Babauta voiced opposition to the bill, citing the region’s insufficient enforcement capabilities, while Republican sponsor Senator Jude Hofschneider emphasized blockchain’s potential to strengthen financial transparency.
Tinian’s Bid for a Blockchain-Based Economy Gains Momentum
The initiative is being spearheaded by Republican Senator Jude Hofschneider, who represents the island of Tinian.
Introduced in February, the bill not only proposes the launch of a fully-collateralized digital currency but also seeks to amend local laws to expand internet-only casino licensing, a move likely aimed at driving economic innovation.
A four-member delegation from Tinian, which includes Hofschneider and fellow lawmaker King-Nabors, unanimously approved the bill on March 12 before forwarding it to Governor Palacios.
The proposed MUSD stablecoin would be backed entirely by reserves of cash and U.S. Treasury bills, which would be held and managed by the Tinian Municipal Treasury.
The conservative reserve model is designed to ensure the stablecoin’s value remains tightly linked to the U.S. dollar, providing both trust and stability to users and regulators.
Marianas Rai Corp. Tapped to Deliver Stablecoin Infrastructure
The technical execution of the MUSD initiative will be led by Marianas Rai Corporation, a local blockchain infrastructure firm headquartered in Saipan.
The company has been appointed as the exclusive technology partner responsible for issuing and redeeming the stablecoin.
According to Vin Armani, Marianas Rai’s co-founder and technology chief, the firm is actively engaged in conversations with potential partners to launch the token swiftly, pending final legislative approval.
The MUSD will be built on the eCash blockchain, a decision likely informed by its scalability and low transaction costs.
Armani has also expressed the company’s readiness to act quickly as broader federal discussions around stablecoin regulation evolve, especially as U.S. lawmakers continue to explore national regulatory frameworks.
Federal Gridlock Highlights CNMI’s Bold Approach to Crypto Innovation
While the CNMI moves decisively toward stablecoin issuance, similar efforts at the federal level remain stalled.
The GENIUS Act, a proposed U.S. law aimed at establishing national guidelines for stablecoins, lost momentum after Senate Democrats withdrew their support due to concerns about former President Donald Trump’s ties to crypto ventures.
Likewise, the STABLE Act, another major piece of stablecoin legislation, has faltered amid growing political polarization.
In contrast, the Northern Mariana Islands are leveraging their local legislative autonomy to position themselves as a forward-thinking hub for blockchain-based finance.
If successful, their pioneering stablecoin effort could set a precedent for other U.S. territories or states looking to integrate digital currencies into their financial systems.
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