The Republic of the Marshall Islands has achieved a historic milestone by launching the world’s first nationwide universal basic income program delivered entirely through blockchain technology. This initiative highlights how governments can leverage modern technology to improve public welfare, making distribution of social benefits faster, more transparent, and more efficient. By utilizing the Stellar blockchain, the Marshall Islands has created a system capable of reaching citizens in even the most remote communities, demonstrating the practical application of blockchain beyond digital currencies.
The ENRA Program: Transforming Public Welfare
The ENRA program represents a government-led initiative to provide recurring income support to eligible citizens. Unlike traditional methods that relied on quarterly physical cash distribution, ENRA leverages digital technology to distribute payments securely and instantly. Through a digital sovereign bond called USDM1, the government can issue UBI directly on the Stellar blockchain. This allows citizens to receive funds in real time, eliminating delays and reducing the costs and logistical challenges associated with physical cash.
The program not only modernizes welfare delivery but also increases accessibility for residents across the country’s dispersed islands. By transitioning to a blockchain-based system, the government ensures that citizens have reliable and equitable access to their benefits regardless of geographic location.
USDM1: Stability and Security in Digital Form
USDM1 is a U.S. dollar–denominated digital sovereign bond, fully backed by short-term U.S. Treasury bills. Unlike traditional cryptocurrencies, which can be highly volatile, USDM1 is designed to provide stable and predictable digital value. This ensures that UBI recipients receive payments that retain their intended purchasing power, offering financial security alongside technological innovation.
The digital bond combines legal safeguards with blockchain transparency, guaranteeing secure and traceable transactions. By using USDM1, the Marshall Islands can implement blockchain technology without introducing monetary or fiscal risk, maintaining public trust while modernizing government payments.
How Citizens Receive Blockchain Payments
To facilitate the distribution of digital UBI, the government developed Lomalo, a custom digital wallet application. Citizens can register for the ENRA program and receive USDM1 payments directly through the Stellar blockchain. The wallet also allows recipients to hold, transfer, or convert digital funds as needed, providing flexibility and control over their benefits.
This approach eliminates the logistical challenges of physical cash distribution, particularly in a country comprised of over 1,000 islands and atolls. Residents no longer need to travel long distances to collect benefits, making the system more equitable, inclusive, and convenient.
Why Stellar Blockchain Was Chosen
The Stellar blockchain was selected for its low transaction costs, fast settlement times, and focus on financial inclusion. These features are critical for a nationwide program like ENRA, which requires reliability and scalability. By leveraging Stellar, the government ensures high transparency, reduces operational costs, and creates a scalable infrastructure that can support future expansion.
Officials emphasize that this blockchain deployment is a distribution mechanism for public welfare, not a replacement for the existing currency, maintaining financial stability while improving efficiency.
Real-World Impact of Blockchain-Based UBI
Prior to this initiative, UBI payments relied on physical cash distribution, which was slow, costly, and difficult to manage in remote communities. Blockchain-based delivery addresses these challenges by enabling instant payments, reducing administrative costs, and providing access to digital financial tools for previously unbanked populations.
The program demonstrates that blockchain technology can solve practical governance problems. It enhances transparency, accountability, and efficiency in public spending, showing that digital innovation can directly improve citizens’ lives.
Global Significance and Future Potential
The Marshall Islands’ blockchain UBI program sets a global precedent. It provides a model for other nations seeking to modernize social benefit delivery, improve financial inclusion, and create transparent systems for public funds. By proving that blockchain can scale to a national level, the country offers a blueprint for governments exploring digital welfare programs.
The initiative may inspire other countries to adopt blockchain for public services, demonstrating that technology can be implemented responsibly to achieve both innovation and stability.
Looking Ahead
The ENRA program illustrates that innovation and stability can coexist in government systems. By combining legal safeguards, fully backed digital instruments, and user-friendly technology, the Marshall Islands has created a model for efficient, equitable, and secure public service delivery.
As global interest in universal basic income, digital payments, and financial inclusion grows, this program proves that blockchain can be a practical, government-ready solution. The Marshall Islands’ approach represents a powerful example of how emerging technologies can transform public finance and improve the lives of citizens worldwide.
