Marshall Islands launches universal basic income program using digital wallet
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Turner Wright
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# Marshall Islands launches universal basic income program using digital wallet
The launch of the UBI program, utilizing a “digital sovereign bond,” occurred two months after the IMF warned against the island nation using an “untested” digital asset.
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The Republic of the Marshall Islands announced that it would allow citizens to access funds through a government-issued digital asset as part of the nation’s Universal Basic Income (UBI) program.
In a Wednesday announcement shared with Cointelegraph, the government of the island nation said it had launched a digital wallet called Lomalo, which will utilize the US dollar-pegged stablecoin USDM1 to enable citizens to access the UBI program. According to the government, the first disbursement of funds will occur in late November, allowing citizens to access them through their wallet, by physical check, or via direct deposit.
“By introducing a secure digital option alongside our traditional methods, we are strengthening our financial systems and ensuring that no community is left behind,” said David Paul, finance minister for the Marshall Islands.
Neighboring Pacific island nations have rolled out similar programs over the years, including Palau’s stablecoin on the XRP Ledger for government employees, and the central bank of the Solomon Islands’ Bokolo Cash for peer-to-peer transactions and retail payments in the nation’s capital, Honiara.
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“Citizens will be able to transfer to other registered Lomalo users,” a spokesperson for the Marshall Islands’ finance minister told Cointelegraph. “Right now, only citizens registered for the UBI can set up a wallet.”
## Warnings from the IMF on the Marshall Islands utilizing digital assets
The launch of the digital wallet as part of the islands’ UBI program followed warnings from the