The Marshall Islands launched the world's first blockchain-based universal basic income program on the Stellar blockchain.

According to CoinDesk, the Republic of the Marshall Islands recently completed the world's first on-chain distribution of universal basic income using the Stellar blockchain and its digitally native sovereign bond USDM1, marking a significant step into the blockchain era for national welfare distribution.

The Marshall Islands Ministry of Finance confirmed that this multi-million dollar project was jointly driven by the Marshall Islands government, the Stellar Development Foundation, and infrastructure partner Crossmint, and is part of the local universal basic income program, ENRA. This program aims to replace the previous quarterly distribution of physical cash with an efficient and transparent digital payment method, particularly benefiting eligible citizens widely dispersed across the islands, significantly improving the coverage and efficiency of fiscal distribution.

USDM1 is a US dollar-denominated sovereign bond, fully backed by short-term US Treasury bonds, and distributed directly to residents' customized digital wallet application, Lomalo, through the Stellar distribution platform specifically built for the project.

A spokesperson for the Marshall Islands Ministry of Finance further explained that USDM1 was issued strictly in accordance with New York law, with a solid and clear legal basis, and does not rely on temporary discretion or policy preferences of regulatory agencies.

All U.S. Treasury bonds used as collateral are held by independent trustees, and residents' redemption rights are legally binding and fully unconditionally guaranteed. ENRA is essentially a fiscal allocation mechanism based on modern financial technology and legal structures. Each unit of USDM1 corresponds to a short-term U.S.

Treasury bond held by the trust at a 1:1 ratio, achieving full asset backing and legal segregation throughout the process, thus ensuring the stability and security of the bond both technically and legally.

The government specifically emphasizes that the issuance and circulation of USDM1 will not harm the country's monetary sovereignty or technological autonomy.

Along with the implementation of this plan, the government simultaneously released a detailed white paper, systematically elaborating on the broader policy concepts and financial framework behind USDM1 and the ENRA plan, showcasing the island nation's active exploration and leading practice in integrating financial innovation and social welfare. (Source: PANews)