The Marshall Islands recently conducted an experiment using the Stellar blockchain to distribute Universal Basic Income (UBI), aiming to assess whether cryptocurrency can replace traditional banking systems. This initiative addresses the challenges faced by many countries where cash and banking infrastructure are inadequate, particularly in remote or underdeveloped regions. As a small island nation, the Marshall Islands has sought to adopt advanced financial technologies to provide direct financial assistance to its citizens. Stellar blockchain, known for its speed and low costs, is globally recognized as a platform for cryptocurrency transfers and financial transactions, promoting greater financial inclusion. The experiment highlights how cryptocurrencies can help overcome the weaknesses of conventional financial systems, especially in countries with limited banking services or cash availability. Furthermore, a crypto-based UBI program has the potential to enhance financial inclusion and strengthen social protection frameworks. However, the use of cryptocurrency also poses challenges, including regulatory concerns, price volatility, and technical complexities. The results of this trial suggest that other nations might consider integrating cryptocurrencies into financial programs in the future, provided there are appropriate government policies and technical infrastructure. The Marshall Islands’ effort signifies a new era challenging the limitations of traditional financial systems, where economic stability and inclusion may be achieved through digital currencies.
Source: decrypt
