Miles apart, one smart start.”
The Republic of the Marshall Islands has created history by launching the world’s first blockchain-powered universal basic income (UBI) program, establishing a daring new standard for digital public financing.
USDM1, a digitally native sovereign bond issued on the Stellar blockchain that aims to provide revenue more quickly, safely, and transparently, is at the centre of the project.
The introduction marks a significant departure from the past and is a component of the nation’s UBI initiative, known locally as ENRA. The government now transfers money directly to people’ digital wallets rather than depending on quarterly physical cash deliveries, which are frequently delayed by distance and logistics.
Residents who qualify can promptly receive their cash with a few phone touches.
The USDM1 bond is completely backed by short-term US Treasury bills and is denominated in US dollars. Strong financial and legal support is provided by the one-to-one issuance of each unit against Treasuries held in trust. The Stellar Disbursement Platform is used to disperse the bond on-chain.
Lomalo, a unique mobile wallet app created by infrastructure provider Crossmint, is how citizens receive their UBI. Without the need for conventional bank accounts, the app enables users to instantaneously receive money over the Stellar network.
The bond is issued under New York law and adheres to a tried-and-true sovereign financing framework, according to a spokesman for the Marshall Islands’ financing Ministry.
An impartial trustee holds the Treasury collateral, guaranteeing recipients’ legal protection and transparency.
Additionally, the administration emphasised that USDM1 is not a brand-new currency. It is a tool for fiscal distribution that has no bearing on the nation’s monetary sovereignty.
The concept was designed to fit the infrastructure and geographic constraints of the country. The Marshall Islands hopes to deliver UBI more quickly, safely, and equitably than ever before by utilising blockchain technology.
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