The Marshall Islands has introduced the world’s first blockchain-based Universal Basic Income (UBI) program utilizing Stellar blockchain technology. This initiative will operate using USDM1, a digital currency backed by U.S. Treasury bonds, representing a new model aimed at providing public financial services to underserved and financially marginalized regions. UBI, recognized globally as a vital economic model for social justice and poverty eradication, involves unconditional cash transfers to citizens to meet basic needs. However, implementing this concept with transparency and secure distribution has been challenging. The Marshall Islands’ approach leverages blockchain’s transparent and decentralized features to address these challenges innovatively.
Stellar blockchain offers a fast and low-cost platform specifically designed for financial services. The USDM1 digital currency’s backing by U.S. Treasury bonds ensures its stability and reliability. This model is expected not only to enhance financial inclusion but also to introduce new methods of public finance through digital currencies worldwide. This development is particularly significant for regions where traditional financial systems are weak or unavailable. The blockchain-based UBI program will facilitate the direct and efficient delivery of financial aid to eligible individuals by improving transparency, speed, and cost-effectiveness. Furthermore, the success of this model could serve as an example for other countries and international organizations.
In the next phase, the program’s success and impact will be evaluated to enable further improvements and broader implementation. This blockchain-based Universal Basic Income experiment holds promise for opening new avenues for social and economic development globally.
Source: coindesk
