There are several possible ways that a privatized universal basic income could be implemented. One such approach involves harnessing the power of open banking intermediaries and credit unions to implement a privatized basic income. By leveraging the unique capabilities of non-profits or credit unions, we can verify identities, invest in diverse assets, and distribute a universal basic income (UBI) directly to individuals.
Non-profits or credit unions can play a vital role in verifying the unique identities of individuals. Through robust identity verification processes, such organizations can ensure that the basic income reaches those who truly need it. This step is crucial for maintaining fairness and preventing abuse of the system.
Building upon identity verification, a non-profit or credit union can establish an asset trust that invests in a range of assets, such as exchange-traded funds (ETFs) and stocks. By diversifying the investments, the trust mitigates risk and maximizes potential returns. Half of these profits can then be reinvested, allowing the trust to grow steadily over time.
The remaining 50% of the profits can be distributed as a universal basic income. Here, non-profits can leverage the efficiency and accessibility of low transaction fee cryptocurrencies to distribute funds to individuals. By utilizing blockchain technology, transactions can be executed swiftly and securely.
For credit unions implementing this approach, the process is simplified. The basic income disbursement could be seamlessly deposited into the accounts of credit union members. This eliminates the need for additional infrastructure or complex distribution systems, making the implementation more straightforward and efficient.
While governments can also implement a universal basic income, there are potential concerns regarding the expansion of government power and size. Privatized basic income offers an alternative, empowering nonprofits, and credit unions to take the lead. By leveraging their existing infrastructure and expertise, these organizations can efficiently distribute the basic income without undue influence from centralized authorities.
A privatized basic income implemented through open banking intermediaries and credit unions holds promise for addressing income inequality. Non-profits and credit unions have the capacity to verify identities, establish asset trusts, and distribute a universal basic income. Whether through cryptocurrencies or direct account deposits, a privately implemented universal basic income can empower communities, ensuring that individuals have access to financial support while maintaining the autonomy and efficiency of non-profit or credit union entities.