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Marshall Islands Deploys On-Chain Universal Basic Income (UBI)

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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.

Electoral Act Amendment: Nigeria’s House Approves Mandatory Real-Time Transmission of Polling Unit Results

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Nigeria’s House of Representatives has approved a major revision to the Electoral Act that would make the real-time electronic transmission of polling unit results compulsory, a response to widespread public demand for greater transparency following the controversial 2023 general elections.

The provision was adopted on Wednesday during clause-by-clause consideration of amendments to the Electoral Act 2022. Under the newly approved wording, the presiding officer at each polling unit must electronically transmit results to the Independent National Electoral Commission’s (INEC) Results Viewing Portal (IReV) in real time after completing, signing, and stamping the prescribed result form (EC8A). Where available, the form must also be countersigned by candidates’ agents before the upload.

Until now, the law did not explicitly require INEC to transmit results as they are recorded, and reliance on technology remained largely discretionary. During the last general election, INEC had promised that real-time uploads would occur — a pledge central to efforts to boost confidence in the electoral process. However, the IReV portal stalled for extended periods after polls closed in several areas, leaving many Nigerians unable to see results as they were announced at polling units, and feeding public suspicion about the integrity of the process.

Advocates of the amendment have applauded the House’s adoption of real-time transmission as a legal requirement, saying it aligns the letter of the law with voters’ expectations for accountability and transparency. Civil society organizations had repeatedly called on the National Assembly to make electronic result transmission mandatory after the uneven performance of IReV and the Bimodal Voter Accreditation System (BVAS) in 2023 undermined public confidence.

Beyond real-time uploads, the House also approved a clause introducing a five-year jail term for presiding officers found guilty of declaring false results — a stringent measure aimed at deterring manipulation at the polling unit level. Another amendment elevates the BVAS or any other prescribed technological device as the primary tool for accrediting voters, replacing manual methods. If the BVAS or another device fails at a polling unit and no replacement is available, the election in that unit must be cancelled and rescheduled within 24 hours if INEC determines the unit’s result could substantially affect the overall outcome.

Concerns About Circumvention and Political Sabotage

While the changes have been welcomed as steps toward a more credible electoral framework, there are lingering concerns that politicians who have historically relied on malpractice and rigging may still find ways to circumvent the rules. The 2023 general elections are the most recent and widely cited example.

INEC had repeatedly assured Nigerians that BVAS and the IReV portal would enable real-time transmission of results nationwide during the presidential and National Assembly elections. That assurance helped generate optimism that technology could help curb longstanding electoral fraud.

But when voting ended on February 25, 2023, the portal did not immediately show results from many polling units. Technical challenges related to scaling up IReV for a nationwide election forced INEC to suspend uploads temporarily, even as results continued to be manually collated and announced at polling units. It was not until later that evening — in some cases hours after polls closed — that the first results began appearing on the portal.

Observers said the delay undermined confidence in the results management process. Some civil society groups and political actors questioned why the system did not perform as expected. International monitoring reports noted that while BVAS and IReV were innovative in theory, their performance under the enormous operational load of a general election was mixed, with many scanned results failing to upload promptly due to connectivity and infrastructure issues.

Opposition figures and commentators also raised allegations — disputed by INEC — that the absence of real-time uploads created openings for manipulation or strategic delays at critical moments, especially in closely contested states. Such assertions compounded public skepticism toward the technology and the broader electoral process.

However, the House’s decision marks a clear attempt to lock technological transparency into law rather than leave it to administrative discretion. Lawmakers appear intent on closing the gap between INEC’s deployment of tech tools and legal obligations, and on strengthening accountability through penalties for misconduct.

Yet the experience of 2023 underscores that mandates alone may not be enough. Experts note that real-time transmission depends not only on legal requirements but also on reliable infrastructure, training of election officials, adequate network connectivity across urban and rural areas, and robust safeguards against manipulation. INEC itself has acknowledged persistent network and infrastructure challenges as obstacles to seamless result uploads.

Bank of Japan’s Expected 25 Bps, Raising Rate to 0.75% from 0.5%

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The Bank of Japan’s Monetary Policy Meeting is ongoing, with the decision announcement scheduled for Friday, December 19. Economists and analysts overwhelmingly expect a 25 basis point rate hike, raising the policy rate from the current 0.5% to 0.75%.

This would mark the highest level for Japan’s short-term policy rate in approximately 30 years since September 1995. The Japan Times, and Nikkei report near-unanimous consensus e.g., all 50 economists in a Bloomberg survey and 90% in a Reuters poll predict the hike.

BOJ Governor Kazuo Ueda has signaled consideration of the “pros and cons” of a hike, with markets nearly fully pricing it in. The move comes amid persistent inflation above the 2% target, strong wage growth expectations, and efforts to normalize policy after decades of ultra-low/negative rates.

While the final outcome isn’t confirmed until tomorrow, a surprise hold would go against broad consensus. The focus will also be on forward guidance for 2026 hikes. The Bank of Japan (BOJ) conducts monetary policy under the Bank of Japan Act, which mandates it to achieve price stability as the foundation for sustainable economic growth.

Price stability allows households and firms to make rational decisions on spending, investment, and resource allocation without disruptions from excessive inflation or deflation. The 2% Inflation TargetIn January 2013, the BOJ explicitly set its “price stability target” at 2% year-on-year increase in the Consumer Price Index (CPI, all items).

This marked a shift to a formal inflation targeting framework, introduced under the Quantitative and Qualitative Monetary Easing (QQE) program launched in April 2013 as part of “Abenomics”, the economic policies of then-Prime Minister Shinzo Abe.

The target is measured primarily by headline CPI including energy and food prices, though the BOJ closely monitors core CPI excluding fresh food and core-core CPI excluding food and energy for underlying trends. The BOJ committed to achieving this target “at the earliest possible time” and has maintained it ever since.

It was accompanied by a joint statement with the government on overcoming deflation. Prior to 2013, the BOJ had a looser “understanding” of price stability around 0–2%, with a midpoint often around 1% from 2006, but avoided strict inflation targeting amid prolonged deflation.

Like many central banks e.g., the Federal Reserve, ECB, the BOJ views 2% as a level that:Provides a buffer against deflation which Japan experienced for decades. Allows room for nominal interest rates to fall in recessions without hitting the zero lower bound. Supports moderate wage growth and economic vitality.

The BOJ uses various tools to influence inflation expectations and economic activity: Interest rate policy— short-term policy rate, currently around 0.5% as of late 2025. Yield curve control previously targeting 10-year JGB yields.

Asset purchases (JGBs, ETFs, etc.). Forward guidance on keeping accommodation until the target is sustainably achieved. The BOJ emphasizes achieving 2% in a stable and sustainable manner, accompanied by wage growth and anchored inflation expectations, rather than temporary spikes from import costs or energy prices.

Japan’s headline and core inflation has exceeded 2% for over three years driven initially by post-COVID recovery, yen weakness, and global commodity prices. Underlying trend inflation is gradually approaching 2%, supported by strong wage negotiations and a tightening labor market.

The BOJ assesses that the likelihood of sustainably achieving the target is increasing, leading to gradual policy normalization ending negative rates in 2024 and modest hikes. However, it remains cautious, monitoring risks like consumption weakness or external shocks, and projects inflation to stay around or above 2% in coming years while continuing accommodative conditions as needed.

The BOJ’s inflation targeting is a cornerstone of its post-2013 framework to escape deflation, with the 2% goal designed for long-term economic health rather than short-term fluctuations.

 

 

 

Crypto Pulls Back as the Nasdaq Drops over 1.5% on the day

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NASDAQ

The cryptocurrency market experienced a notable pullback, aligning with broader risk-off sentiment in equities, particularly in tech-heavy indices.

Bitcoin (BTC) dipped below $86,000 at points during the session hitting weekly lows around $85,000–$86,000, before recovering slightly to trade in the $86,000–$88,000 range. It was down roughly 0.3%–1% on the day and about 8% for the week.

Major altcoins fared worse: Ethereum (ETH) fell ~3%–4%, Solana (SOL) and XRP each dropped ~12% weekly. The total crypto market cap declined ~1.5%–1.9% in the last 24 hours, extending a 7-day slide to over 7%.

This move mirrored weakness in U.S. stocks, where the Nasdaq Composite fell around 1.5%–1.9% intraday, tech stocks led the decline amid ongoing AI valuation concerns and year-end positioning. Crypto’s high correlation with Nasdaq prevented any meaningful decoupling, despite occasional hopes for independence.

Analysts point to: Year-end profit-taking and tax-loss harvesting. Elevated liquidations in derivatives ~$370M total, including $153M in BTC. Broader macro uncertainty mixed U.S. data, Fed signals. Extreme fear in sentiment gauges (Fear & Greed Index around 22–29).

Some see oversold conditions as potential “max pain” bottoms, with BTC stuck in an $86K–$92K range. Meanwhile, precious metals bucked the trend—silver hit new records, gold neared all-time highs—highlighting a rotation into traditional safe havens.

Overall, this feels like a classic late-year risk reset rather than the start of a deeper bear market, but volatility remains high heading into 2026. The ongoing pullback in crypto, synchronized with the Nasdaq’s ~1.5–2% drop and broader tech/AI stock weakness on highlights several immediate effects.

Leverage unwinds continue, with hundreds of millions in positions liquidated. This amplifies downside moves, as seen in BTC dipping toward $85K–$86K intraday before partial recovery to ~$86K–$88K. Altcoins, ETH down ~4% suffer more due to higher beta.

Crypto’s strong positive correlation with Nasdaq often 0.5–0.7+ in 2025 means it acts like a “high-beta tech stock.” AI valuation concerns, year-end positioning, and macro uncertainty e.g., Fed signals on rates drag both markets. This prevents crypto from decoupling as a safe haven.

Fear & Greed Index in “Extreme Fear” (20s), signaling potential capitulation. Oversold conditions could lead to short-term bounces if support holds (e.g., BTC above $85K). This appears as a healthy leverage reset rather than the start of a prolonged bear market, based on analyst consensus.

Reduced volatility, BTC now less volatile than Nvidia in some metrics and deleveraging clear out speculation, building a stronger foundation. Institutional inflows via ETFs remain supportive long-term, though short-term outflows add pressure.

Consolidation around current levels around $85K–$92K for BTC, with dips bought by long-term holders. Regulatory clarity and ETF demand could fuel recovery. Elevated volatility persists, with alternating rallies/pullbacks amid shifting narratives.

If Nasdaq weakness deepens like AI bubble burst or tighter Fed policy, BTC could test $80K or lower, though historical patterns suggest rebounds after similar mid-cycle dips. Traditional safe havens like gold/silver hitting highs outperform, indicating flight from risk assets like crypto/tech.

BTC increasingly trades with equities, especially during risk-off— negative asymmetry: falls harder than stocks drop. This reduces its appeal as an independent hedge but boosts accessibility for traditional investors. Despite 2025’s rollercoaster— ATH ~$126K in October, now -30%, supply dynamics, institutional adoption, and patterns suggest potential for new highs in 2026 some forecasts >$140K.

The pullback resembles prior cycles’ corrections before expansions. This feels like a classic year-end risk reset amid overleveraged positioning—painful short-term but potentially constructive for a more mature market heading into 2026. Monitor Nasdaq/tech for cues, as crypto’s fate remains tied to broader risk appetite.

Impact of the Bank of England’s 0.25% Rate Cut to 3.75% on Mortgage Rates

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The Bank of England’s Monetary Policy Committee (MPC) announced a 25 basis point cut to the Bank Rate, lowering it from 4% to 3.75%. This was the fourth rate cut of 2025 and the sixth since mid-2024.

Narrowly 5-4 in favor of the cut (four members preferred to hold at 4%). Governor Andrew Bailey — Switched to support the reduction after voting to hold in November.

A sharper-than-expected drop in UK inflation to 3.2% in November from 3.6% in October, stagnant economic growth forecast at 0% for Q4 2025, and a weakening labor market.

The BoE signaled a gradual path lower but cautioned that future decisions could be “closer calls,” with lingering concerns about services inflation and potential upside risks.

This provides a pre-Christmas boost for mortgage borrowers especially those on tracker rates and the broader economy, though savings rates may edge lower. Markets now price in limited further cuts in 2026, potentially to around 3-3.25%.

The December 18, 2025, rate cut provides relief for many borrowers, particularly those on variable-rate mortgages, while fixed-rate deals have already seen much of the benefit priced in due to market anticipation.

Mortgage rates are influenced by the base rate but more directly by SONIA swap rates which had driven cuts in fixed deals ahead of the announcement. Mortgages directly linked to the base rate.

Around 500,000 homeowners will see an automatic 0.25% reduction in their interest rate. This typically reduces monthly repayments by £15–£29 depending on loan size; e.g., ~£29 on an average tracker mortgage, or £15 per £100,000 borrowed.

Changes usually take effect within a month or so. Lenders aren’t obliged to pass on the full cut, but many do partially. Some have announced reductions, such as dropping their SVR equivalent from 6.74% to 6.49% effective January 2026.

Average SVR remains high at around 7.27%, so borrowers here could save modestly but should consider switching to a fixed or tracker deal. No immediate change—your rate is locked until the deal ends.However, new fixed-rate deals and remortgages benefit indirectly.

Lenders had already cut rates in anticipation, a “rate war” in recent weeks, with averages falling throughout December. Those remortgaging in 2026 e.g., coming off high-rate deals from 2024 could secure significantly lower rates, potentially saving £100+ per month for first-time buyers or typical borrowers.

Current average UK mortgage rates as of mid-December 2025 is ~4.89%. Two-year fixed: 4.82% some best buys as low as ~4.33–4.06% at lower LTV. Five-year fixed: 4.90% some best buys ~4.38% or lower.

These are down from recent months and reflect expectations of gradual further cuts. The cut was widely expected, so much of the positive impact on fixed rates is already reflected.

Markets now price in limited further cuts in 2026 possibly just one or to ~3–3.25%, due to cautious BoE guidance on persistent services inflation and economic risks. This could keep fixed-rate reductions gradual rather than sharp.

Overall, the current borrowing costs are easing, providing a boost for affordability, remortgagers, and the housing market heading into 2026. UK mortgages are also progressing to a massive growth tied to improved liquidity management.

If your mortgage deal is ending soon, shop around now—rates for new deals remain competitive, and locking in early can secure today’s lows. For personalized advice, consult a mortgage broker.