Marshall Islands Launches Universal Basic Income With Crypto Payment Option
The Marshall Islands has rolled out a nationwide universal basic income (UBI) program, giving citizens the option to receive their payments through cryptocurrency alongside more traditional methods.
Key Takeaways
The Marshall Islands has launched a national UBI program with both crypto and traditional payment options.
The initiative aims to improve financial inclusion without replacing jobs.
Most residents currently prefer bank deposits or checks over digital wallets.
Under the program, every citizen is entitled to quarterly payments of around $200, or roughly $800 per year. The goal is to help offset rising living costs and slow emigration from the island nation, according to a report by The Guardian.
The first round of payments was issued in late November. Recipients were able to choose between direct bank deposits, paper checks, or a government-backed digital wallet that delivers funds on the blockchain.
A Safety Net, Not a Substitute for Work
Finance Minister David Paul emphasized that the UBI is meant to support citizens, not replace employment income.
“We want to make sure no one is left behind,” Paul said, describing the payments as a financial safety net and a morale boost rather than a replacement for wages.
Home to around 42,000 people, the Marshall Islands faces distinct economic and geographic challenges. Communities are spread across remote atolls, making it difficult and costly to deliver public services and financial aid. Officials say the crypto payment option was introduced to help overcome these logistical hurdles.
Backed by a Longstanding US Agreement
The program is funded through a trust established under a long-standing agreement with the United States, which compensates the Marshall Islands for decades of US nuclear testing. The fund currently holds more than $1.3 billion, with the US committed to contributing an additional $500 million through 2027.
Dr. Huy Pham, an associate professor and crypto-fintech specialist at RMIT University, called the initiative a global first.
“This is the world’s first national rollout of a UBI program,” Pham said, noting that deploying blockchain technology at a countrywide level is highly unusual.
Payments made via crypto use a US dollar-pegged stablecoin, offering price stability while allowing fast, traceable transfers across the country’s many islands.
Early Uptake of Crypto Remains Limited
Despite the digital option, most citizens are sticking with familiar payment methods. Around 60% of recipients chose bank deposits, while most of the remaining payments were issued as checks. So far, only about a dozen people have opted to receive their UBI through the digital wallet.
Global Interest in Blockchain-Based UBI
The Marshall Islands’ approach comes as other blockchain projects explore similar ideas. Sam Altman’s World project (formerly Worldcoin) aims to build a global UBI-style system by verifying individuals through biometric scans and distributing its native token, WLD.
World uses iris-scanning devices to issue a unique World ID, allowing users to prove they are human and receive token allocations. The project also launched World Chain, an Ethereum layer-2 network, serving more than 15 million verified users.
While still early, the Marshall Islands’ experiment offers a real-world test of how blockchain technology could support social programs at a national scale.
