Northern Mariana Islands Governor Arnold Palacios has vetoed a bill allowing the local government of Tinian to launch a US dollar-pegged stablecoin. In a letter dated April 11, he cited several legal concerns and potential unconstitutionality of the bill, which aimed to issue licenses for internet casinos and included provisions for the Tinian Treasurer to manage a stablecoin called the Tinian Stable Token. Tinian, with a population of about 2,000, has an economy mainly driven by tourism and was hopeful of becoming the first US government entity to issue a stablecoin. The bill had earlier received unanimous support from the local legislative delegation. Governor Palacios highlighted issues regarding regulation of activities that cross jurisdictional boundaries and the lack of robust measures to prevent illegal gaming. The stablecoin was intended to be backed by cash and US Treasury bills held in reserve, linking it to an upgrade in internet connectivity through a major tech initiative in the region.

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