Sunday, September 24

Here’s how Jack Dorsey plans to solve income inequality

Former Twitter CEO Jack Dorsey recently discussed the possibility of a Bitcoin powered Universal Basic Income (UBI) strategy to end poverty. In a recent Twitter space chat, Dorsey was speaking to US congressional candidate Aarika Rhodes on how Bitcoin based UBI has the potential to solve income inequality.

It should be noted that Dorsey’s Start Small initiative has invested over $55 million across the United States and overseas to experiment on universal basic income. Start Small Initiative is a charity created by Dorsey for global COVID-19 relief. According to the charity’s page, “After the pandemic, the focus will shift to girl’s health and education, and UBI.”

For Dorsey, the usage of fiat money creates many issues, he believes that Bitcoin’s fundamental structure may help fix them. “Obscurity of information forces and incentivizes people to negative (financial) behaviors that don’t work for them, their community or family,” said Dorsey while pointing out that current centralized systems are not in favor of poor communities because of the lack of transparency .

What is UBI?

UBI is touted as the solution to alleviate poverty, reduce income inequality, and increase society’s economic well-being. This includes providing every member of a society with an unconditional basic income to cover their essential living needs. Dorsey believes a Bitcoin powered UBI experiment will make the operations transparent, “as the code is transparent, the policy is transparent.”

Under the new experiment, Dorsey said that he will collaborate with a new small-scale closed-loop community of sellers and merchants that will adhere to the Bitcoin standards. After success through these small-scale efforts, he will try to do the same on high-scale implementation. “(We) will change people’s mindsets in fundamental ways that are net positive and compound throughout their communities, and encourage other actions like sellers and merchants around them doing similar things,” he noted.

Also Read  Texas judge temporarily blocks Gov. Greg Abbott's transgender order

Dorsey noted that helping people by giving them money directly is far better than the money that the governments spends on existing support structures. “It’s not helping people.”

Dorsey is a staunch Bitcoin supporter. His love for cryptocurrency dates back to 2017 when he started advocating Bitcoin as the king coin. When the crypto market crashed in 2018, Dorsey was unfazed, calling Bitcoin the future world currency, despite the digital currency being at its lowest point in several years. In March 2019, Dorsey had said that he spends several thousand dollars each week to buy Bitcoin.

Recently, I have criticized Meta’s (formerly Facebook) cryptocurrency project Diem calling it “wasted effort and time.” Dorsey said that “those two years or three years, or however long it’s been”, could have been spent making “Bitcoin more accessible for more people around the world,” which would also benefit Meta’s “Messenger product and Instagram and WhatsApp.” Dorsey was speaking to MicroStrategy CEO Michael Saylor on Tuesday at “Bitcoin for Corporations 2022” conference.

When Saylor asked Dorsey how Bitcoin could assist corporations in solving some fundamental problems, to which Dorsey says that the internet having a native currency opens many doors for “internet companies, technology companies, but more importantly for everyday people, activists, people who have questions in the world , curiosity, and recognizing that the currency systems just aren’t working for them”.

Leave a Reply

Your email address will not be published. Required fields are marked *