Forget "money" for a minute. Instead, think in terms of "stuff" - actual, physical goods, and also services.
Where does the stuff come from to lift every person out of poverty? There are only two possible answers - create more stuff, or redistribute the stuff that we have (or a combination of the two). Which one does Glo do, and how does it do that? Especially, "at sufficient scale", how would it do that?
The long-term vision is to move (some portion of) economic activity onto a globally accessible stablecoin. We think this has potential to reduce friction in international finance & commerce, which will grow the economic pie. (The fact that it's actually still pretty hard to venmo someone from the US to Canada, or move dollars out of Argentina, creates a lot of deadweight loss and opportunities for rent-seeking.)
But ultimately Glo is redistributive. In the near-term, putting money into Glo is like putting money into a T-bill-linked savings account, except someone else gets the yield.
We note this elsewhere [0] -- and it's a fair rejoinder that we should probably include this on our actual website -- but if Glo reaches trillions of dollars of market cap, we're most likely operating in a world where we issue multiple stablecoins in different currencies. Each reserve would then be backed by government bonds denominated in each stablecoin's currency.
It's certainly true that if we added trillions in new demand for any particular asset, or even class of asset, we'd change the market a lot. At the point where we 'exhaust' demand for government bonds and drive their returns to zero, the global monetary environment would look so different that we'd probably need to adjust multiple things about our strategy and implementation. The doc in the original link is intended as a vision of what we think is possible in terms of scale, but the fact that we're talking about the far future pretty much necessitates that some of the implementation details will have to be clarified when we know more.
As with the previous article on this topic, happy to explain why I chose to join GLO as someone who is relatively crypto-skeptical or answer any questions I can. :)
AnimalMuppet|3 years ago
Where does the stuff come from to lift every person out of poverty? There are only two possible answers - create more stuff, or redistribute the stuff that we have (or a combination of the two). Which one does Glo do, and how does it do that? Especially, "at sufficient scale", how would it do that?
setgree|3 years ago
The long-term vision is to move (some portion of) economic activity onto a globally accessible stablecoin. We think this has potential to reduce friction in international finance & commerce, which will grow the economic pie. (The fact that it's actually still pretty hard to venmo someone from the US to Canada, or move dollars out of Argentina, creates a lot of deadweight loss and opportunities for rent-seeking.)
But ultimately Glo is redistributive. In the near-term, putting money into Glo is like putting money into a T-bill-linked savings account, except someone else gets the yield.
Hope that helps, happy to keep chatting, etc.
bluehorseray|3 years ago
setgree|3 years ago
Glo is a stablecoin that crypto investors/regular folks buy that generates returns for people living in poverty.
Glo gives money away through GiveDirectly, so the recipients get the money in their local currency.
More on the basic model: https://twitter.com/GLO_incomecoin/status/157187934049285325...
blacksqr|3 years ago
They propose to invest 7% of all the money in the world in US Treasury bills and use the interest to eliminate poverty.
Of course if they came anywhere near that goal interest rates on T-Bills would plummet.
setgree|3 years ago
It's certainly true that if we added trillions in new demand for any particular asset, or even class of asset, we'd change the market a lot. At the point where we 'exhaust' demand for government bonds and drive their returns to zero, the global monetary environment would look so different that we'd probably need to adjust multiple things about our strategy and implementation. The doc in the original link is intended as a vision of what we think is possible in terms of scale, but the fact that we're talking about the far future pretty much necessitates that some of the implementation details will have to be clarified when we know more.
[0] https://forum.effectivealtruism.org/posts/EAiwxZN4Jiyup8d9G/...
unknown|3 years ago
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atdrummond|3 years ago
jeffwask|3 years ago
setgree|3 years ago
Our main funder is Sid Sijbrandij, CEO of GitLab, who's pretty integrally involved, whose reputation is linked to Glo's success/legitimacy, etc.
More on us here https://www.globalincomecoin.com/articles/careers
P.S. I am a real live person and my website is seth ariel green dot com