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Rishi Sunak “wanted to scrap the Rwanda scheme” when he begin his 2022 Tory leadership bid, a campaign insider has told Sky News. 

The prime minister “had no serious interest” in illegal or legal migration “until he was persuaded otherwise during the campaign”, the insider told our political editor Beth Rigby.

Politics Live: Sunak addresses calls to remove ex-Post Office boss’s CBE

It follows a report in The Sun which claimed Mr Sunak pushed back against the policy while chancellor because he was concerned about the costs.

The newspaper said his reservations remained when he unsuccessfully took on Liz Truss in the first Tory leadership contest of 2022, but was warned off scrapping it on the grounds it could upset Conservative MPs.

Mr Sunak has made the scheme central to his premiership since entering Downing Street.

On Monday he insisted he never said he was going to axe the Rwanda policy, but did not deny considering it.

In a carefully-worded answer to a question about the report at an event in Accrington, he said: “I didn’t say I was going to scrap it. I mean, that’s completely false. Of course I didn’t.”

He said it was his job as chancellor “to ask some probing questions” and scrutinise money spent on taxpayers’ behalf.

But he said he ultimately backed the policy because “I believe in this scheme” and “we need a deterrent” to small boat crossings.

It came after Mr Sunak on Sunday admitted questioning the “value for money” of the policy while he was chancellor, but insisted it was “wrong” to infer that he did not back sending asylum seekers to the east African country.

Leaked documents seen by Sky News suggested Mr Sunak wanted the scheme “scaled back” and was described as believing the “deterrent won’t work”.

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Leaks suggest PM had Rwanda doubts

The Rwanda policy is seen as key to Mr Sunak’s pledge to “stop the boats” ahead of the next election, which the prime minister has signalled is likely to be held in the second half of 2024.

Read More:
When could the next general election be?
What is the Rwanda plan and why is it controversial?
Labour says Sunak should admit Rwanda doubts

The government has committed at least £400m to the Rwandan government, but no asylum seekers have been relocated as yet after the Supreme Court ruled the proposal unlawful.

Mr Sunak is hoping to address the legal issues with his Safety of Rwanda Bill which is due to return to the Commons this month for debate.

But he could face a showdown with his own MPs, as critics on the right of his party have threatened to amend or even vote down the legislation if it is not tightened, while moderates in the opposite wing have warned against any changes that could breach the UK’s international obligations.

On Monday, the prime minister said he was open to “bright ideas” that could make the bill more effective “whilst complying with our international obligations and retaining Rwanda’s participation in the scheme”.

Labour said claims Mr Sunak contemplated cancelling the plan altogether was evidence of “the total Tory chaos over their failing Rwanda scheme and the weakness of Rishi Sunak”.

Shadow home secretary Yvette Cooper said: “The idea that Rishi Sunak could doubt the policy when chancellor, plan to cancel it in his leadership campaign, and then end up belatedly championing it once it failed and will cost the taxpayer £400m shows how incredibly weak and hopeless he is, and how far he is just chasing gimmicks to pander to parts of the Tory party and keep his job.”

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Marshall Islands launches universal basic income program using digital wallet

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Marshall Islands launches universal basic income program using digital wallet

The Republic of the Marshall Islands announced that it would allow citizens to access funds through a government-issued digital asset as part of the nation’s Universal Basic Income (UBI) program.

In a Wednesday announcement shared with Cointelegraph, the government of the island nation said it had launched a digital wallet called Lomalo, which will utilize the US dollar-pegged stablecoin USDM1 to enable citizens to access the UBI program. According to the government, the first disbursement of funds will occur in late November, allowing citizens to access them through their wallet, by physical check, or via direct deposit.

“By introducing a secure digital option alongside our traditional methods, we are strengthening our financial systems and ensuring that no community is left behind,” said David Paul, finance minister for the Marshall Islands. 

Neighboring Pacific island nations have rolled out similar programs over the years, including Palau’s stablecoin on the XRP Ledger for government employees, and the central bank of the Solomon Islands’ Bokolo Cash for peer-to-peer transactions and retail payments in the nation’s capital, Honiara.

Related: From islands to highways: How blockchain interoperability is finally catching up

“Citizens will be able to transfer to other registered Lomalo users,” a spokesperson for the Marshall Islands’ finance minister told Cointelegraph. “Right now, only citizens registered for the UBI can set up a wallet.”

Warnings from the IMF on the Marshall Islands utilizing digital assets

The launch of the digital wallet as part of the islands’ UBI program followed warnings from the International Monetary Fund (IMF). In 2023, the group urged the government of the Marshall Islands to reconsider its central bank digital currency program, then known as SOV. 

“Progress on rolling back past digital initiatives is welcome,” said the IMF in a Sept. 10 notice. “Current plans to issue a ‘digital sovereign bond’ carry significant risks relative to perceived returns, which cannot be effectively mitigated given lack of pre-requisite capacity. Thus, in the mission’s view, the authorities should not proceed with the global launch as planned.”

The IMF said that the expansion of Decentralized Autonomous Organizations (DAOs), which the Marshall Islands began recognizing as legal entities in 2022, and the launch of the UBI program using the “untested” USDM1 could have “adverse macro-fiscal and financial integrity implications.” The fund urged the government to scale back the UBI program to a “more targeted scheme to those who need it the most.”