Marshall Islands Launches Universal Basic Income With Crypto Payments

The Republic of the Marshall Islands has rolled out a groundbreaking universal basic income (UBI) program, becoming the first nation to offer citizens the option to receive quarterly payments via blockchain-delivered, US dollar-pegged digital tokens.

Known locally as ENRA, the initiative provides every resident citizen with approximately $200 every three months—totaling $800 annually—to alleviate cost-of-living pressures and serve as a social safety net. First disbursements occurred in late November 2025, funded by the Compact Trust Fund, a US-supported vehicle exceeding $1.3 billion in assets, tied to compensation for historical nuclear testing.

Recipients can choose traditional methods like bank deposits or checks, or opt for the digital route through the Lomalo app. This delivers USDM1, a sovereign digital bond fully backed 1:1 by short-term US Treasuries and issued on the Stellar blockchain in partnership with the Stellar Development Foundation and Crossmint. The stable, tokenized asset enables fast, traceable peer-to-peer transfers, addressing logistical challenges across the nation’s remote atolls.

Experts, including RMIT University’s Dr. Huy Pham, hail it as the world’s first national UBI rollout, with blockchain integration unique for nationwide welfare. Officials emphasize efficiency, inclusion, and transparency without creating a new currency—the US dollar remains legal tender.

Early uptake of the digital option is low, with most preferring banks or checks, though adoption is expected to grow with education efforts. The International Monetary Fund has raised concerns over potential inflation and risks, urging targeted alternatives.

As Pacific nations face banking de-risking and geographic barriers, the Marshall Islands’ model could inspire innovative public finance, blending sovereign assets with blockchain for equitable distribution.