Creating a Universal Basic Income through Blockchain Technology
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Chapter 1: The Concept of Universal Basic Income
Imagine a scenario where every individual receives a guaranteed sum of money each month, irrespective of their financial status. This sum would be securely and automatically deposited into each person's account, insulated from political influences and difficult to modify without widespread agreement. It would represent a seamless transaction that occurs at the same time for everyone, securely and without risk of fraud.
This is where smart contracts come into play.
As we move closer to a cashless society, most financial transactions now occur digitally, with funds exchanged directly between devices. This digital currency is merely a representation of the physical cash that our central banking system recognizes as available. The traditional concept of "cash" is becoming increasingly outdated, with its conversion into tangible notes being more of a formality.
What if the federal government assigned each citizen a secure digital wallet, similar to a Social Security number? This unique identity could facilitate transactions with governmental organizations and serve as an official wallet address. These addresses would be linked to a public blockchain, maintaining a record of all transactions.
If implemented on a platform like Ethereum, equipped with smart contract capabilities, the potential becomes fascinating. Each wallet could be programmed to receive automated digital currency payments on a monthly, weekly, or customized schedule. Wallet holders could connect these wallets to their bank accounts or other financial instruments. This approach would guarantee that every citizen starts with a minimum amount of money, irrespective of their wealth or background, fulfilling one of Franklin D. Roosevelt's four freedoms: freedom from want.
Where would the funding for these transfers originate? There are numerous possibilities, but a straightforward approach would be to source funds from major digital companies that capitalize on our personal data and the value created through their platforms, such as Facebook and Amazon. Additional funding could come from wealth taxes on passive income sources. The goal is to tap into valuable assets that benefit from every American's contributions and redistribute them equitably.
Executing such a wealth transfer through secure wallets and blockchain accounting presents three key advantages:
Independence from Political Influence
The automated nature of these payments means they would continue unaffected by political disruptions. A smart contract could withdraw funds from wallets of major digital companies and automatically deposit them into citizens' wallets, regardless of government shutdowns or legislative gridlock.
Non-discriminatory Distribution
The UBI blockchain would only reveal wallet addresses, keeping the identities of recipients confidential. This anonymity would ensure that no one could discriminate based on age, ethnicity, income, or criminal history, making the distribution fair for all citizens.
Efficiency and Reliability
Implementing this system would be straightforward, as the coding for fund distribution would be less complex than many existing smart contracts. Automated transfers would enhance government efficiency in managing entitlement programs and occur with minimal direct oversight. The process could follow these steps:
- Withdraw funds to a government-backed holding wallet
- Monitor the balance to ensure sufficiency
- Distribute funds to individual wallets
While the idea of a blockchain-based digital Universal Basic Income is still in its conceptual phase, it holds great promise. The above outlines a simplified vision of what such a system could entail, but in reality, the details would likely be more intricate. It's crucial for us and our elected representatives to consider how emerging technologies can address some of our most persistent political challenges and promote equal opportunities for all citizens.
This video titled "What and Why UBI and How Crypto is One Way" explores the potential intersection of Universal Basic Income and cryptocurrency, highlighting innovative solutions for financial equality.
In this video, "Andrew Yang explains how crypto and a universal basic income could intersect," Yang discusses the implications of integrating cryptocurrency into UBI frameworks.