Israel based social trading and multi asset brokerage firm eToro claim to have come up with a possible solution to the omnipotent and ever growing problem of global financial inequality, which entails the introduction of a new cryptocurrency named GoodDollar. The initiative, coined the “GoodDollar” experiment has been started by eToro in Tel Aviv and London, and the firm has pumped $1 million into it as it seeks for contribution of all sorts for the project.
GoodDollar, introduced at the Lisbon Web Summit, targets the empowerment of the deprived of the world by eliminating the involvement of middlemen and creating a direct ownership link between people and the GoodDollar. eToro, who gained the first mover advantage on trading Binance coin earlier in October, also introduced their first ever crypto wallet which initially is to support BTC, BCH, ETH, and LTC.
GoodDollar emphasizes on the fact that 42 of the world’s richest people have more combined wealth than the poorest 3.7 billion, and aims to proverbially deviate from the existing norms and rules. The GoodDollar, an open-source currency, would be at the center of the experiment, which is in fact and as of now, a series of tests aiming to bring equilibrium to the sphere of income by building its foundation upon the postulate of Universal Basic Income. The initiative includes, and calls for stakeholders that long for an end to inequality.
eToro attributes global financial disparity to two main reasons. The first is the imbalance of prosperity; a whopping 94% of the total global wealth is owned by 20% of the planet’s inhabitants, hence the disenfranchised find it a tall order to maneuver their way through the problems related to the very basic needs and necessities of life. This imbalance of prosperity causes widespread and unfortunate unrest. The other factor they attribute the disparity to is the rise of “technological unemployment”. As the monster of technological advancement sharpens its claws, 800 million people are set to lose their jobs to AI, automation, and robots by 2030, according to a McKinsey study. That would of course result in them finding it hard to maintain their sustenance.
GoodDollar bases itself on the principles of Universal Basic Income (UBI) which is a form of guaranteed minimum income for every individual. eToro argue that it is financial and wealth related struggle that hinders people’s progress in excelling at what they have the actual potential for and subsequently realizing it. When their basic needs and necessities are not covered for, they turn to jobs and careers that they usually do not have much interest in, resulting in low job satisfaction, low productivity, and unfulfilled potential. a UBI system would guarantee a fixed minimum income, regardless of the employment status, or the circumstances somebody is born into. The payments would, according to the model, be made at regular intervals or periods, given in cash only, to every citizen instead of on a household basis, be unconditional as to the demonstration of “need”, and be given to all of the citizens. Proponents argue that as unemployment increases with the advent of tech based, more efficient substitutes, people would need to be supported for basic needs and to give them a cushion to plan their future in a better way. Elon Musk is of the view that eventually, “we will have no choice” but to put in place a system that guarantees a basic income. Other supporters of some shape or form of UBI are Abraham Lincoln, Thomas Jefferson, Martin Luther King Jr, Peter Drucker, Mark Zuckerberg and Barack Obama.
With GoodDollar, eToro claims that a “layer” of financial assistance would be made for the poor and disenfranchised, by using smart contracts via blockchain technology which would help exchange money and other assets without needless interference. The salient features of GoodDollar would be its easy availability for everyone, globally, the ease with which it would be exchangeable into other tokens, negligible transaction charges for the convenience of consumers, and the “fair” and rational distribution of the currency, so as to avoid unequal amassment of wealth.
Binance has been one of the crypto players in recent times which has used cryptocurrency for charity and welfare, in its attempts to assist and fund the flood affectees in Eastern Uganda. eToro and GoodDollar are now a part of the group which aims to make use of crypto for diminishing and subsequently, ideally wiping out financial disparity, and which also includes players such as Mannabase and SwiftDemand.