The Marshall Islands has begun paying every resident a universal basic income (UBI) of $200 every three months — a national programme the government says is the first of its kind and which offers recipients the choice to receive funds by bank transfer, check or in cryptocurrency to reach remote communities.

What the programme pays and who is eligible

The scheme provides a payment of $200 per person each quarter, equivalent to about $800 a year, and is available to all residents of the Pacific nation, the government said. The first payments were distributed at the end of November and most recipients spent the money on food and everyday necessities, officials reported.

Why cryptocurrency was included

The government introduced a cryptocurrency option alongside traditional methods to overcome logistical challenges in the Marshall Islands, where populations are dispersed across many small and remote atolls that are difficult and costly to reach by conventional cash delivery methods. The digital-wallet option is intended to make it easier to get payments to residents living on distant islands.

Funding and the trust that backs the scheme

Officials say the UBI is financed from a long-term trust fund established under an agreement with the United States; the trust is reported to be worth more than $1.3bn and is intended to provide sustained financing for the programme.

Government statements and policy goals

Finance Minister David Paul described the payments as part of a government commitment to reduce the impact of rising living costs and to ensure that no resident is left without support. Ministers have characterised the amount as supportive rather than transformative — large enough to materially help household budgets but not intended to replace employment income.

Public response and uptake

Early reporting indicates that while most residents still favour receiving payments by conventional means such as bank transfers or checks, the cryptocurrency option has been used by some recipients and is particularly valued for its practicality in reaching remote communities. Observers note that the modest size of the payment — $800 a year — is likely to be spent on immediate needs rather than saved or invested.

Reactions and expert concerns

Advocates of UBI and financial inclusion have welcomed the move as an experiment in national-level cash transfers combined with modern payment technology, while some economists and digital-currency experts have warned about the risks posed by volatility in crypto markets, the need for financial literacy, and the infrastructure and regulatory safeguards required to protect recipients’ funds and data.

Context: why the Marshall Islands moved first

The Marshall Islands faces high living costs and geographic isolation that make delivery of services expensive, prompting policymakers to seek solutions that improve access and reduce logistical barriers. Officials framed the UBI as a pragmatic measure to shore up household finances amid rising prices for food and essentials.

What to watch next

Key areas to monitor as the programme unfolds include uptake rates for each payment method, the performance and security of the chosen cryptocurrency and wallet providers, the trust fund’s sustainability over time, and evaluations of the UBI’s impact on poverty, employment and local economies. Independent assessments and transparent reporting by the government will be crucial for determining whether this model is replicable elsewhere.