Overview
The Marshall Islands has introduced a groundbreaking universal basic income (UBI) program that offers citizens the choice to receive payments via cryptocurrency. This initiative aims to alleviate economic pressures and foster financial inclusion across the nation.
Payment Details
Every resident citizen is eligible for quarterly payments of approximately $200, totaling around $800 annually. Recipients can receive their payments through bank deposits, paper checks, or a government‑backed digital wallet that operates on blockchain technology. The digital wallet uses a US dollar‑pegged stablecoin, ensuring price stability and enabling efficient, traceable transfers across the islands.
Funding Source
The program is funded through a trust established with the United States, which compensates the Marshall Islands for historical nuclear testing. The trust holds over $1.3 billion in assets, with the U.S. pledging an additional $500 million through 2027.
Recipient Preferences
Despite the innovative digital option, most recipients (about 60 %) prefer traditional bank deposits, with checks being the second most popular choice. Only a small number of individuals have opted for the digital wallet so far.
Minister’s Statement
Finance Minister David Paul emphasized that the program is intended to ensure broad inclusion and act as a social safety net rather than replace employment income. The Marshall Islands, with a population of around 42,000 spread across remote atolls, faces unique economic and geographic challenges. The cryptocurrency option was introduced to help overcome logistical barriers in delivering financial assistance.
Global Significance
This initiative marks a global first in using blockchain technology for a national UBI program. Meanwhile, Sam Altman’s World (formerly Worldcoin) is also working on a global UBI mechanism using biometric scans and blockchain technology. The Marshall Islands’ UBI program with a crypto payment option represents a significant step in leveraging technology for social welfare, highlighting the potential of blockchain to enhance financial inclusion and address economic challenges.
