Published: Dec 17, 2025 at 17:39
The Marshall Islands move toward becoming a digital welfare state.
In a global first, the Republic of the Marshall Islands has officially launched a national Universal Basic Income (UBI) scheme that utilizes cryptocurrency to distribute wealth across its remote archipelago. The program, announced on December 16 and fully operational by mid-December, aims to mitigate rising cost-of-living pressures for its citizens.
Blockchain as national infrastructure
Every resident citizen is eligible for quarterly payments of approximately $200. While traditional options like bank transfers and checks are available, the government is heavily promoting a government-backed digital wallet that delivers funds via a US dollar-pegged stablecoin.
The decision to use blockchain was driven by the practical challenges of delivering physical currency to hundreds of isolated islands. By using stablecoins, the nation bypasses expensive and slow legacy banking rails, providing citizens with instant liquidity.
The scheme is supported by a sovereign fund holding over $1.3 billion in assets, partly funded by US compensation for historical nuclear testing. Experts suggest this is the most significant nationwide implementation of blockchain for social welfare to date, setting a precedent for other Pacific nations.
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