365Crypto
The Marshall Islands just rolled out a Universal Basic Income program powered by a government-issued digital asset. Citizens will use a new wallet called Lomalo, which runs on the USDM1 stablecoin. This move drops the nation straight into the Web3 era with a splash.
The government said citizens will start receiving funds in late November. People can choose to use the Lomalo app, take a physical check, or opt for direct deposit if they prefer the old-school route. This gives everyone access, even those still warming up to digital tools.
Finance minister David Paul said the program mixes modern tech with practical access. Lomalo users can send funds to other citizens who also have wallets. Right now, only people registered for UBI can make accounts, but the system could expand later.
This launch comes after warnings from the International Monetary Fund. The IMF said the country’s earlier digital plans carried major risks, especially the “digital sovereign bond.” They argued that new tech like USDM1 and the spread of DAOs could strain the country’s financial system. Still, the Marshall Islands chose a controlled rollout rather than a full retreat.
Footing:
Stablecoin: a crypto token whose value stays fixed, usually to a currency like the US dollar.
DAO: a decentralized group running on blockchain rules instead of a traditional company.
