Aarika Rhodes, a US congressional candidate and full-time elementary school teacher, discussed the ramifications of a Bitcoin (BTC)-powered universal basic income (UBI) strategy with Twitter co-founder and Block (previously Square) CEO Jack Dorsey.
“The lack of openness in the existing centralised banking system encourages and incentivizes people to engage in negative (financial) behaviours. That don’t work for them, their community, or their families,” added Dorsey.
“If there’s one thing to keep in mind regarding Bitcoin, it’s that both the operations and the code are open to scrutiny. Furthermore, the policy is transparent.”
Dorsey believes that BTC’s basic structure has the potential to handle a multitude of use cases and issues. As a result of using fiat currency. Through firm endeavours like Start Small, the entrepreneur has committed more than $55 million in the United States. As well as internationally to experiment with UBI.
“We’re also about to experiment with a Bitcoin-based UBI.”
Dorsey’s Bitcoin-powered UBI experiment will require the establishment of a tiny, closed-loop community of sellers and merchants. Who adhere to Bitcoin’s regulations. He intends to leverage the happiness quotient and desire to participate to discover use cases for large-scale deployment.
Rhodes believes that adding Bitcoin will reduce the expenses of banking fees:
“It’s a win-win situation for everyone to have a network like Lightning (network). Where you can transact for really little fees. It doesn’t matter where you are in terms of finances.”
Adopting the Bitcoin standard instils long-term thinking in terms of financial literacy
Dorsey feels that adopting the Bitcoin standard instils long-term thinking in terms of financial literacy, but that his scepticism of a BTC-powered universal basic income will fade as the results of the ongoing testing become clearer:
“Just possessing it (BTC) will change people’s minds in fundamentally good ways that will spread throughout their networks, encouraging other behaviours such as sellers and merchants doing similar things.”
Dorsey is concerned about the Bitcoin standard’s disadvantages as well as its benefits. He elaborated by pointing out inefficiencies in government policy and how Universal Basic Income can help alleviate some of them:
“If you want to help individuals, giving people money directly is far superior to the money that governments (federal and municipal) spend on these established support agencies. It isn’t aiding people in any way.”
Open-ended platform like Bitcoin
In a recent interview with MicroStrategy CEO Michael Saylor, Dorsey said that instead of attempting to construct its own currency, Diem, Facebook (later rebranded as Meta) should have used an open-ended platform like Bitcoin.
As previously reported, Dorsey also indicated that making BTC more accessible would benefit many of Meta’s instant messaging and voice-over-IP services, including Facebook Messenger, Instagram, and WhatsApp.