Marshall Islands launches Universal Basic Income (UBI) program, allowing citizens to choose cryptocurrency for subsidies

The Marshall Islands recently officially launched a nationwide Universal Basic Income (UBI) program, allowing citizens to receive government subsidies via cryptocurrency. This makes it one of the first countries in the world to incorporate blockchain technology into its national UBI system. According to The Guardian, the program stipulates that each eligible resident citizen can receive approximately $200 per quarter, totaling about $800 annually. The goal is to alleviate the rising cost of living and slow down population outflow.

The first UBI payments were distributed in late November. Citizens can choose from three methods of receipt: bank transfer, paper check, or receiving funds through a government-supported blockchain digital wallet. Digital wallet payments are made using stablecoins pegged to the US dollar to ensure price stability, while enabling fast, traceable transfers across islands.

Davis Paul, the Minister of Finance of the Marshall Islands, stated that the core aim of the program is social inclusion, not to replace earned income. “The government wants to ensure no one is left behind. This income is more of a safety net and psychological support, rather than a substitute for work,” he said.

As a Pacific island nation with a population of about 42,000 spread across numerous remote atolls, the Marshall Islands faces practical challenges in public service delivery and financial subsidies. Introducing cryptocurrency payments is seen by officials as a way to address issues of geographic dispersion and logistical efficiency.

Funding for the UBI program comes from a trust fund established based on a long-term agreement between the Marshall Islands and the United States, partly to compensate for the impacts of nuclear testing in the past. The fund currently exceeds $1.3 billion, with the US also pledging an additional $500 million before 2027.

However, in practice, cryptocurrency payments are still in the early stages. Data shows that about 60% of the initial subsidies were distributed via bank deposits, with the rest mainly issued as checks. Only a dozen or so recipients chose to receive funds through digital wallets.

It is noteworthy that this initiative also resonates with global explorations of UBI in the crypto space. For example, World (formerly Worldcoin), supported by OpenAI founder Sam Altman, is also attempting to build a global UBI system using blockchain and identity verification technology. The Marshall Islands’ experiment is seen as an important real-world test of “cryptocurrency + public policy.”