Let me start by saying that I’m against implementing universal basic income (UBI) through taxation. I was against Andrew Yang’s policy of implementing VAT to pay for it. However, with the pandemic of Covid 19 and the airdrop of $1,200 a month it got me thinking about a crypto solution. Notwithstanding early talks of a digital dollar.
This is how UBI crypto would work. Let’s call them Crypto Dollars-
- Crypto Dollars would be a stable coin pegged to USD.
- There would be a $1 trillion limited supply.
- Every month $1,000 or $1,200 would be airdropped into each citizen’s bank account.
- Crypto Dollars would be given utility by allowing a 1% discount when paying your taxes with it. This would be for companies only and would give companies the incentive to use Crypto Dollars as payment for goods and services. The reason for excluding individuals from the 1% discount is because they would hoard the Crypto Dollars instead of spending it.
- There would be no other way of obtaining Crypto Dollars other than via the airdrop or by accepting it for goods and services.
- When the government receives the Crypto Dollars via taxes they just put it back into the UBI pool to be distributed to the citizens.
Note that this is not a 100% solution and it could be refined and made better. Feel free to poke holes in this theory.