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The Marshall Islands has become the world’s first country to implement a nationwide universal basic income program with cryptocurrency payment options, distributing $200 quarterly payments to all 42,000 eligible citizens starting in November 2024.
The Pacific island nation is offering residents a choice between traditional bank transfers, paper checks, or a government-backed digital wallet using U.S. dollar-pegged stablecoins—funded by a $1.3 billion trust established to compensate the country for decades of American nuclear weapons testing.
The Marshall Islands, home to roughly 42,000 people, sit across hundreds of islands and atolls between Hawaii and Australia. Delivering public services across this vast maritime area has long posed logistical challenges, particularly for residents in remote communities where banks and government offices are scarce.
Finance Minister David Paul said the UBI scheme is meant to promote inclusion rather than replace paid work.
“We, the government, want to make sure no one is left behind,” Paul told The Guardian.
He emphasized that the payments are intended as a basic safety net and morale booster, not a substitute for employment income.
Government officials argue that even modest, predictable payments can help households manage everyday expenses such as food, transport, and school supplies.
The policy is also aimed at addressing outward migration, as many Marshallese leave for the United States or other countries in search of better economic opportunities.
A notable feature of the programme is the option to receive UBI through a digital wallet using a U.S. dollar–pegged stablecoin. The government says the choice of a stablecoin is deliberate, offering price stability while enabling faster and more transparent transfers across islands where physical banking infrastructure is limited.
“Blockchain technology allows funds to move efficiently across a highly dispersed population,” said Dr. Huy Pham, associate professor and crypto-fintech lead at RMIT University. “This is the world’s first national rollout of a UBI programme, and doing it at a country scale with blockchain is highly unusual,” he said.
Despite the technological ambition, early adoption of the digital option has been modest. Data from the Marshall Islands Social Security Administration shows that about 60% of initial payments were made via bank deposits, with most of the remainder issued as paper cheques. Only around a dozen recipients opted for the digital wallet in the first round.
Officials say low uptake is not unexpected and reflects limited familiarity with digital assets rather than rejection of the idea. They add that education campaigns and gradual exposure may increase usage over time, particularly among younger citizens and those living on outer islands.
The UBI programme is financed through a trust fund established under a long-standing agreement with the United States, partly intended to compensate the Marshall Islands for decades of U.S. nuclear testing conducted in the region during the mid-20th century.
The fund currently holds more than $1.3 billion in assets, and Washington has committed to contributing an additional $500 million through 2027.
By drawing from investment returns rather than new taxes, the government says the programme is fiscally sustainable in the medium term. Still, some analysts caution that long-term viability will depend on global market conditions and careful management of the trust’s assets.
“This approach ties social policy directly to historical responsibility and long-term investment performance,” said an economic analyst familiar with Pacific Island economies. “It’s innovative, but it also requires strong governance to ensure the fund continues to support future generations.”
The Marshall Islands’ experiment comes as interest in UBI is growing worldwide, particularly as automation and artificial intelligence reshape labour markets. In the private sector, Sam Altman’s World project, originally launched as Worldcoin, has promoted blockchain as a tool for global income distribution.
The world’s model centres on verifying unique human identities through biometric scans using a device known as the Orb. Verified users receive a “World ID” and periodic allocations of the project’s native token, WLD, which supporters describe as a form of network-based basic income.
The project also operates World Chain, an Ethereum layer-2 blockchain serving more than 15 million verified users.
While the Marshall Islands’ government-led programme differs fundamentally from privately run initiatives like Worldcoin, experts say both reflect a broader search for new ways to distribute economic value in a digital age.
For now, the Marshall Islands’ UBI rollout will be closely watched by policymakers and development experts alike.
If successful, it could offer a rare real-world case study of how traditional welfare policy and emerging financial technology intersect—especially in small, geographically dispersed nations facing unique economic pressures.
