Photo: Supplied
The island of Tinian in the Northern Marianas is the first US jurisdiction to adopt a government-backed cryptocurrency for internet gaming.
The CNMI's House of Representatives has voted to override Governor Arnold Palacios' veto of a senate bill.
Senate Local Bill 24-01, Draft 1 essentially authorizes internet gaming using a regulated platform and creates the "Tinian Stable Token" or MUSD, backed by the US dollar and managed by the CNMI treasury on a secure blockchain.
It also enables casinos to accept and process stablecoin payments for digital gaming and mandates full transparency and recordkeeping of all gaming transactions.
Chief technology officer of Marianas Rai Corporation, and an advocate of the measure, Vin Armani, told lawmakers the actions they took on the matter of the override "will have an impact on the economic prosperity, or lack thereof, for generations of citizens of the CNMI".
"You have a chance to attract billions of dollars of investment and tax revenue from the fastest growing segment of the financial technology industry."
Senator Jude Hofschneider, who co-sponsored the bill, emphasized the need for diversification in the wake of repeated economic shocks from tourism decline and federal program wind-downs.
He thanked the House for passing the override of Palacios' veto.
"We believe that this initiative can help not only Tinian but the entire CNMI in our efforts to economic recovery," he said.
"We often hear statements being made about diversifying our economy. This exercise is a great indication of what that means."
He assured lawmakers that regulations and enforcement mechanisms already exist through the Tinian Casino Gaming Control Commission, which would oversee licensing and compliance.
Palacios initially vetoed the measure, citing concerns raised by the Office of the Attorney General about oversight, financial transparency, and constitutional authority. The Attorney-General questioned whether such a currency framework could bypass federal and local financial regulations or create liabilities for the CNMI government.
But lawmakers in both the Senate and House rejected the veto, arguing that the bill only enables a legal framework and does not appropriate any government funds or authorize uncontrolled crypto trading.
Tinian's local leaders said the system will be tightly regulated, with every token transaction recorded on a tamper-proof blockchain for public auditing.
Representative Patrick San Nicolas said a vote to override Palacios' veto on the bill is a vote for the future of not only Tinian but the entire CNMI.
"Overriding this Senate local bill is a forward-looking measure that gives our island and our Commonwealth the legal infrastructure to enter a global digital economy, through standalone internet gaming licenses and the creation of the Tinian stablecoin.
"This is not a rushed thing into unregulated digital wireless. This is a bill about transparency. This is a bill about accountability and modern financial infrastructure. It is about building an economy within the Commonwealth."
Floor leader, representative Marissa Flores, who voted no to the override, asked her colleagues for patience and not to rush into passing an override without carefully thinking of its ramifications.
"By taking the time to think carefully, to act thoughtfully, and to persevere patiently, we can make decisions that not only serve our immediate political needs, but also pave the way for the long-term security, prosperity, and the well-being of our Marianas."
On 9 May the Senate voted 7-1 to override Palacios' veto, which then needed a two-thirds majority in the House to pass and was voted through 14-2 on 15 May.
