The Governor of the Northern Mariana Islands vetoes the Tinian bill to issue a dollar stablecoin

ChainCatcher news, according to Cointelegraph, the Governor of the Northern Mariana Islands, Arnold Palacios, vetoed a bill that would allow the local government of this U.S. territory to issue stablecoins. In a letter dated April 11, Palacios stated that the bill has multiple legal issues and may be unconstitutional.

The bill was originally intended to allow Tinian Island, with a population of just over 2,000, to issue a stablecoin called MUSD (Marianas US Dollar), which would be fully backed by cash and U.S. Treasury bonds held in the Tinian city government's treasury.

Previously, the bill was unanimously passed by the Tinian delegation on March 12. If the bill had passed, the Tinian government would have become the first government entity in the U.S. to issue a stablecoin, ahead of Wyoming, which plans to launch a stablecoin in July.