Could Bitcoin provide a universal basic income?

Twitter co-founder Jack Dorsey recently discussed why a universal basic income (UBI) backed by Bitcoin (BTC) could work, arguing against what he believes is a lack of transparency in traditional financial markets.

He discussed the possibility for implementing this bitcoin-powered income with Aarika Rhodes, a US congressional candidate and an elementary teacher.

“Obscurity of information forces and incentivizes people to negative behaviors that don’t work for them, their community or family”, Dorsey said. He contrasted the way mainstream finance operates to the openness and transparency of the Bitcoin blockchain.

According to Dorsey, the use of cryptocurrencies, such as BTC, could in fact help resolve many of the problems that are originally introduced by fiat money. Now, he is spearheading his experiment through Start Small, a company he founded, and other ventures and initiatives.

Collectively, Dorsey has invested more than $55m to see if a UBI, powered by blockchain and traditional means, could actually work.

The project would involve a closed community of merchants and sellers who will need to stick to certain Bitcoin standards, Dorsey explains.

Rhodes is on the same page with Dorsey, as she argued that BTC transactions would eliminate bank fees.

However, Dorsey remains wary of some of the negative impacts that BTC could have on communities as well.

For example, there are inefficiencies, he argues, insofar as government policies go. A UBI could help address some of those. In fact, a UBI could be much better than some of the support structures already in place.

“If you intend to help people by giving them money, directly is far better than the money that the governments spend on these existing support structures. It’s not helping people”, Dorsey said.

His argument seems to be that a UBI would eliminate the need for additional support structures in the first place as it would be money that could be used on anything and not restricted within healthcare, utilities, or any other specific segment.

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Updated: 02/07/2022 — 10:00