Marshall Islands Launches Pilot for Universal Basic Income Using Blockchain
- The Republic of the Marshall Islands has begun a pilot program for universal basic income (UBI) using the Stellar blockchain.
- Citizens are receiving UBI payments in the form of USDM1, a digital asset distributed via the Lomalo government wallet.
- Approximately 40,000 residents are targeted for quarterly disbursements to simplify transactions in a cash-dependent economy.
- The USDM1 is fully backed and functions like a money market fund, allowing holders to receive generated income directly.
- This initiative aims to address structural banking limitations faced by citizens due to reliance on a single correspondent bank.
The pilot program seeks to explore alternatives to traditional banking systems that have proven inadequate, especially following the financial crisis of (2008). By leveraging blockchain technology, authorities aim to improve financial resilience and streamline social benefit distribution.
This innovative approach could redefine economic support mechanisms, as seen with the distribution of USDM1 among targeted residents aiming for improved financial inclusion.(Source)
