Marshall Islands Launches Universal Basic Income Program Using Digital Wallet

Why It Matters

The initiative marks one of the first national UBI schemes to rely on a stablecoin, testing the viability of digital assets for social welfare and potentially reshaping financial inclusion in small economies, while also drawing scrutiny from the IMF over fiscal stability and regulatory readiness.

Summary

The Republic of the Marshall Islands has launched a digital wallet called Lomalo, using the US dollar‑pegged stablecoin USDM1, to distribute its universal basic income (UBI) program, with the first payouts slated for late November. The rollout follows a September IMF mission that warned the government against proceeding with its digital sovereign bond and the use of an "untested" digital asset, citing macro‑fiscal and financial‑integrity risks. The finance ministry says the wallet will complement traditional disbursement methods and allow peer‑to‑peer transfers among registered citizens. Neighboring Pacific nations such as Palau and the Solomon Islands have already piloted stablecoin‑based payment systems.