CMC News

Marshall Islands Launches UBI Program With #DigitalWallet

The Republic of the Marshall Islands introduced a digital wallet system that enables citizens to receive Universal Basic Income payments through a government-issued #stablecoin. The program launched Wednesday, two months after the International Monetary Fund cautioned against using untested digital assets for sovereign financial programs.

The Lomalo wallet utilizes #USDM1, a dollar-pegged stablecoin, to distribute UBI funds to citizens through multiple access methods. Recipients can receive payments via the digital wallet, physical check, or direct deposit, according to the government announcement.

David Paul, finance minister for the Marshall Islands, stated the secure digital option strengthens financial systems while ensuring no community is excluded from access. The first disbursement is scheduled for late November, when registered citizens can begin receiving funds through their preferred method.

Citizens registered for the UBI program can transfer funds to other Lomalo users, according to a spokesperson for the finance ministry. Currently, only individuals enrolled in the UBI initiative are eligible to establish wallets on the platform.

Neighboring Pacific Island nations have implemented similar blockchain-based payment systems in recent years. Palau deployed a stablecoin on the #XRPLedger for government employee payments, while the Solomon Islands' central bank introduced Bokolo Cash for peer-to-peer transactions and retail payments in Honiara.