The Marshall Islands has launched a national universal basic income (UBI) program providing quarterly payments via cryptocurrency, in addition to conventional options. Analysts call it the pioneering program of its type globally.
Under the program, all eligible residents will receive quarterly payments of about US$200. The measure is designed to alleviate financial strain on households. The first instalments were made in late November, with citizens able to choose how to receive the funds: into a bank account, as a paper check, or in digital form via a official digital wallet.
"We the government want to make sure everyone benefits," said a senior finance official. "The $200 per citizen each quarter, which is about $800 a year, is not meant to force you to leave employment … but it’s a significant boost for people."
The UBI scheme is financed by a dedicated endowment established as part of a deal with the US. The endowment contains over $1.3bn in assets, with further funding of $500m secured through 2027. Part of the aim involves providing compensation for historical nuclear testing carried out in the region.
The cryptocurrency delivery method involves a digital token pegged to the American dollar. This was designed to solve the logistical challenge of delivering funds across hundreds of remote islands. "We saw the opportunity in what the blockchain has to offer," remarked the finance official.
Blockchain is best known as the foundation for bitcoin, but it can also be used for traditional assets like government bonds, which support this digital payment scheme.
However, experts caution that digital payments by themselves do not guarantee financial inclusion. In a nation where web access is patchy and often interrupted, fundamental services remains a prerequisite. "Improving internet coverage, increasing device ownership – such elements are the minimum for a digital system," one analyst commented.
Early figures show most recipients are opting for conventional channels. About 60% of the first payments were deposited into traditional accounts, with the remainder issued as paper checks. Only a small number – roughly a dozen people – have chosen the digital wallet option so far.
Officials involved in the implementation have traveled to remote communities to enroll citizens. Accounts indicate many recipients spent the funds immediately for basic needs like groceries. Others allocated the $200 for community celebrations around a national festival.
"You can tell people are pleased, because on the streets, there’s so much traffic, as if there’s a big something happening," observed a project official.
This isn't the initial attempt the Marshall Islands has explored digital currency. A 2018 plan to launch a sovereign cryptocurrency ultimately stalled after warnings from global institutions.
Global analysts have flagged that while the blockchain approach is novel, it carries significant risks, including financial, regulatory, and image-related concerns, particularly if oversight is not robust.
The success of this pioneering program is uncertain. "Universal income schemes are uncommon, particularly at national scale, and there are few examples that combine this economic model with a digital delivery component in a remote nation," explained a university lecturer.
However, the initiative may present clear benefits for spread-out countries. "Where traditional financial services are sparse, a digital wallet may lower frictions and make transfers easier, especially for remote communities," she added.
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