The Marshall Islands launched the world's first blockchain-based universal basic income program on the Stellar blockchain.
PANews reported on December 17th, citing CoinDesk, that the Republic of the Marshall Islands (RMI) has completed the world's first on-chain distribution of Universal Basic Income (UBI) using the Stellar blockchain and its digitally native sovereign bond, USDM1. The country's Treasury confirmed that this multi-million dollar project, developed in partnership with the Stellar Development Foundation (SDF) and infrastructure provider Crossmint, is part of the local Universal Basic Income Program (ENRA). This program replaces quarterly physical cash distributions with digital transfers, benefiting numerous eligible citizens scattered across the islands. USDM1 is a dollar-denominated sovereign bond fully backed by short-term U.S. Treasury securities and distributed through the Stellar distribution platform to the customized digital wallet application Lomalo.
A spokesperson for the Marshall Islands Treasury stated that USDM1 is issued under New York law, based on established law, and not on regulatory discretion or policy preferences. The collateral, U.S. Treasury bonds, is held by an independent trustee, with a fixed, unconditional, and legally enforceable redemption right. ENRA is a fiscal allocation program, with each unit issued on a one-to-one basis in trust short-term U.S. Treasury bonds, fully backed and legally segregated. The government emphasizes that USDM1 does not compromise the country's monetary or technological sovereignty. A white paper released alongside the program outlines its broader policy and financial framework.
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