The Republic of the Marshall Islands (RMI) has launched the world’s first nationwide on-chain universal basic income program, known locally as ENRA.
This initiative provides eligible resident citizens with quarterly payments of approximately US$200 about $800 annually to address rising living costs, geographic isolation, and economic challenges in the Pacific nation of around 42,000 people.
Payments are distributed using USDM1, a digitally native sovereign bond fully backed 1:1 by short-term U.S. Treasury bills and issued under New York law. The system runs on the Stellar blockchain, enabling instant, low-cost transfers via the Lomalo mobile wallet built by Crossmint.
Developed with the Stellar Development Foundation (SDF) and Crossmint. Citizens can choose traditional methods (bank deposit or check) or the on-chain digital wallet. Initial uptake of the crypto option is low—only about a dozen opted for it in the first round, with ~60% choosing bank transfers.
The scattered atolls make physical cash deliveries costly and inefficient. Blockchain bypasses banking limitations, RMI relies on a single correspondent bank and reduces remittance fees. Supported by the Compact Trust Fund over $1.3 billion in assets, tied to U.S. compensation for historical nuclear testing.
Described as the first national UBI rollout globally, and uniquely blockchain-enabled at scale. It maintains U.S. dollar sovereignty without creating a new currency. This marks a milestone in real-world blockchain adoption for public finance, focusing on financial inclusion in remote areas.
The Republic of the Marshall Islands’ ENRA program, launched in late 2025, represents a pioneering real-world application of blockchain for national-scale social welfare.
By offering citizens the option to receive quarterly ~$200 payments via a blockchain-based digital wallet using the USDM1 sovereign bond on Stellar, alongside traditional methods, it addresses practical challenges while setting precedents in several areas.
The nation’s scattered atolls make traditional cash or bank transfers expensive and slow. Blockchain enables instant, low-cost disbursements, bypassing limited banking infrastructure. This reduces logistical costs and improves reliability for outer-island residents.
As the first nationwide on-chain UBI, it demonstrates blockchain’s utility beyond speculation—for transparent, auditable public finance. Transactions are immutable and real-time verifiable, enhancing accountability without creating a new currency— USDM1 is fully backed by U.S. Treasuries and preserves USD sovereignty.
It demonstrates blockchain’s viability for transparent, efficient government disbursements at national scale. By enabling instant, low-cost transfers via the Lomalo wallet, it solves logistical nightmares in remote atolls while maintaining full USD backing and sovereignty—no new currency is created.
This shifts blockchain’s narrative from hype to operational impact, providing a compliant model for sovereign digital assets. In geographically challenged nations, it bypasses limited banking infrastructure, reduces fraud risks, and lowers costs.
Modest payments ~$200 quarterly can have outsized effects on living standards, health, education, and small businesses, particularly empowering women through direct individual transfers.
As the world’s first permanent nationwide UBI and blockchain-enabled, it offers a blueprint for other small or developing economies, especially in the Pacific, facing similar isolation or de-risking by global banks.
It could inspire digital welfare systems, programmable payments, and alternatives to CBDCs—using tokenized treasuries for secure social programs without central bank complexities.
Sovereign endorsement legitimizes stablecoins and blockchain for core functions like welfare. It could inspire similar uses in other small or developing nations facing de-risking by global banks or geographic barriers.
Provides a safety net against inflation and emigration, potentially empowering individuals like women’s financial autonomy via direct payments. However, low initial crypto uptake ~dozen users vs. 60% bank transfers highlights digital literacy challenges, especially among older citizens.
The IMF has raised concerns about fiscal sustainability— ENRA costs 8% of GDP and risks from “untested” digital assets. Scaling could crowd out other spending, though funding from the U.S.-backed Compact Trust Fund provides stability.
Overall, this is a milestone for practical blockchain adoption in public policy, offering a model for digital welfare in underserved regions while testing scalability and inclusion.






