Marshall Islands launches an blockchain-based $800 universal basic income program

The Marshall Islands launched a national universal basic income program that pays $800 per citizen per year, delivered in quarterly installments. Payments can be received in a Lomalo digital wallet, by bank deposit, or as a paper check.

Officials describe it as the first nationwide UBI distributed over a blockchain system. Lomalo does not require a bank account, a design intended to reach residents on remote atolls with limited access to branches and ATMs.

The government pegs the stablecoin option to the U.S. dollar using reserves invested in U.S. Treasury assets. For those who prefer traditional channels, the bank deposit and check options remain in place.

Under the program, every Marshallese citizen living in the country receives the same amount regardless of income. Beyond the universal transfers, larger payments are available for households facing extraordinary costs related to food or housing.

Finance Minister David Paul linked the funding to the country’s trust fund, which has grown through contributions from partners, including the United States, and investment returns. He indicated the government wants more of the fund’s gains to reach households after years when spending focused on public operations and infrastructure.

We didn’t see the impact of it, as far as the majority of the Marshallese are concerned. All this money goes into financiing the government, infrastructure development and ohter things, but people continue to see that their lives are not improving, their economic situations are not improving,

remarked Paul.

He characterized the $800 amount as adjustable, depending on trust fund performance and broader economic conditions. The goal, he added, is to sustain the UBI without new taxes.

Recent policy documents put GDP per capita in the $7,000–$7,500 range, with IMF projections showing real growth of about 2.5% and inflation around 5.2% for 2025. International advisers, including the International Monetary Fund, have warned that a uniform UBI could accelerate spending and add to price pressures, and have encouraged consideration of a more targeted approach if needed.

Paul pushed back on the inflation risk argument, pointing to the nation’s reliance on imports and exposure to global shocks. In his view, the UBI serves as a basic safety net during periods of rising prices or economic stress, helping residents remain in the islands rather than move abroad.

The Marshall Islands maintain long-standing economic ties with the United States under the Compact of Free Association. The trust fund was valued at a little over $1 billion for the 2024-25 fiscal year and is scheduled to receive additional front-loaded U.S. funding through 2027 under a 2023 agreement, according to government disclosures.