Marshall Islands CBDC Tracker

The Marshall Islands is in the launch phase of its central bank digital currency (CBDC) development. Although the Marshall Islands does not have a central bank, the government launched a digital wallet called “Lomalo” and a “stablecoin” called USDM1 as part of a universal basic income (often abbreviated as UBI) program in November 2025. Because the Marshall Islands government is the issuer, the stablecoin is effectively a CBDC.

CBDC History and Development

In 2018, news emerged that there would be an official “cryptocurrency” in the Marshall Islands. Two government officials told Bloomberg that it would be given legal tender status and referred to as the Sovereign or SOV. The government made this official with the Sovereign Currency Act of 2018 and the SOV was to be issued by the Ministry of Finance. Therefore, although the country does not have a central bank, the SOV would be a CBDC for all intents and purposes.

President Hilda Heine said, “This is a historic moment for our people, finally issuing and using our own currency, alongside the USD. It is another step of manifesting our national liberty. Allocating SOV units directly to the citizens will circulate the currency and distribute wealth efficiently to our people. In addition, The RMI will invest the revenues to support its climate change efforts, green energy, healthcare for those still affected by the US nuclear tests, and education.”

According to the legislation, the supply of SOV would start at 24 million units and grow at a constant 4 percent per year. In 2020, it was revealed that the Marshall Islands would use the Algorand protocol. Around the same time, however, legislation was introduced to repeal the SOV.

In a rare turn of events, the International Monetary Fund spoke out against the Marshall Islands creating its own CBDC in 2021. Although known for pushing CBDCs, the International Monetary Fund warned that CBDC issuance “would raise risks to macroeconomic and financial stability as well as financial integrity.”

In November 2024, the cabinet of the president of the Marshall Islands “endorsed the establishment of a private public partnership (PPP) between the Government of the Republic of the Marshall Islands and MIBOND Global LLC in respect to issuing sovereign digital currency.”

In November 2025, the Marshall Islands launched a digital wallet called “Lomalo” and a “stablecoin” called USDM1 as part of a universal basic income (often abbreviated as UBI) program. Because the Marshall Islands government is the issuer, the stablecoin is effectively a CBDC. However, it should be noted that the government partnered with the company MIBOND Global LLC to handle “coordinating and administering the issuance and redemption, its collateral and interest payouts, risk management, and all regulatory compliance tasks.” The International Monetary Fund described the project as a "premature implementation of new largely untested policy initiatives.” It also said that the “contribution to financial inclusion appears limited.”

Human Rights and Civil Liberties Concerns

The Marshall Islands earned a 93 out of 100 in Freedom House’s 2024 Freedom in the World report. Even then, however, it’s important to recognize that the creation of a CBDC could open the door to risks to financial privacy and financial freedom.

For additional information on concerns regarding violations of human rights and civil liberties, see the following reports by Amnesty International, Financial Tyranny Index, Freedom House, Human Rights Watch, Privacy International, and the U.S. Department of State. For additional information on concerns regarding the risks of CBDCs, see the following webpage and report by the Cato Institute: The Risks of CBDCs and Central Bank Digital Currency: Assessing the Risks and Dispelling the Myths.

For additional information regarding metrics, the methodology page explains each of the data points and provides their respective sources.