Marshall Islands Launches World-First National Basic Income Scheme Using Cryptocurrency
In late November 2025, the Marshall Islands initiated a pioneering universal basic income (UBI) scheme, offering quarterly payments of approximately US$200 to each of its roughly 42,000 residents. This national program is distinguished by its blockchain-based cryptocurrency delivery system, making it the world's first such rollout at a national level, according to foreign expert Huy Pham. Recipients can receive payments via bank transfer, cheque, or a government-backed digital wallet that delivers a USD-pegged stablecoin cryptocurrency. Approximately 60% of initial payments were deposited into bank accounts, the remainder issued as paper checks, while only about a dozen recipients enrolled for the digital wallet option. The scheme functions as a social safety net designed to mitigate rising living costs and counter out-migration among the population. It is financed by a US-funded trust fund established through an agreement with the United States, currently holding over US$1.3 billion in assets, with an additional commitment of up to US$500 million through 2027 to compensate for historical nuclear testing. The cryptocurrency system is underpinned by government bonds and utilizes blockchain technology to support digital payments. However, concerns remain regarding inclusion, as internet connectivity and smartphone access gaps in the nation limit digital wallet uptake. Observers note that blockchain delivery alone may not guarantee financial inclusion without further improvements to digital infrastructure. The International Monetary Fund (IMF) has cautioned about the risks linked to blockchain-based delivery systems and UBI programs, highlighting potential financial, fiscal, legal, reputational, and governance vulnerabilities. This follows a stalled 2018 effort at a sovereign cryptocurrency in the Marshall Islands after IMF warnings.
