eToro has invested $ 1 million of its pocket to launch a blockchain experiment that would seek to reduce wealth inequality.
The multi-asset brokerage firm announced on Friday that "GoodDollar Experiment" will test a cryptocurrency that pays social interest for the economically disadvantaged. These tokens will be distributed free of charge among the verified participants with the sole purpose of creating a global, open and universal basic income (UBI). However, eToro did not mention the process that will go through the verification and distribution of the expected token launch.
GoodDollar in general aims to create a direct corridor to help exchange money, property, shares or any source of value, transparently and without conflict. The token, according to eToro, will be universally accessible and exchangeable with other global currencies.
"The cryptocurrency will be coined and distributed free to any person, based on the verification of the social identity on the blockchain.The currency will have an interest / social inflation incorporated, which gives more to those who have less", reads the press release of eToro.
In the long term, a UBI system could be useful when it comes to identifying individuals with limited access to the traditional economy. Unscheduled tokens could prove ownership of an individual. It would be easier for governments to organize and distribute the wealth of the state accordingly. For example, economic subsidies could reach the poor directly without being exposed to corrupt intermediaries.
Yoni Assia, co-founder, CEO of eToro, has assured that its team of designers, engineers and product economists is developing a prototype that includes smart contracts.
"We believe we can create a mass-market cryptocurrency designed to reduce inequality and provide a universal basic income," he said.
"The fusion of blockchain technology, the growing support for UBI and the awareness that wealth inequality must be reduced, can finally converge into a new global economic system that would give all human beings financial freedom to pursue their purpose and happiness ".
Emphasizing that only 1% of the world's population holds half of the wealth in 2017, Hesse has called for support from veterans and experts from technology, economics, politics and other similar sectors.
"I would like to invite other partners to participate in this important experiment," he added. "We are looking for experts in the areas of decentralized identity, governance, local and global adoption of financial products and wealth distribution".
Assia also announced that her team is looking for ambassadors to help spread the word about the GoodDollar Experiment project. The head of eToro also looked for lenders – investors and capitalists – who could provide financial support for their project.
"So if you are passionate about using technology for social good, please get in touch," he added.