The eToro multi asset brokerage has opted to make use of decentralized finance (DeFi) technology for it’s newly-launched Universal Basic Income (UBI) distribution platform, going by the name of GoodDollar. This will allow the platform to hand out crypto-backed stablecoins free of charge.

Providing Financial Services To The Unbanked

GoodDollar stands as a registered non-profit, and will allow anyone to receive its native stablecoin ($G). Anyone with a phone number can create a wallet, as well.

This distributed platform will be capable of using the yield farming protocol, having recently been popularized, in order to sustain deposits made on the platform. Initially speaking, every $G coin will be backed by an equal amount of DAI stablecoin, but the platform has made it clear that it plans to back $G with an array of various cryptocurrencies.

A portion of the acquired interest from the deposited assets will be distributed to its supports. The rest, however, will be allocated as collateral in order to create and distribute $G every day.

Plans Of Creating Connections For 1.7 Billion Unbanked

Yoni Assia stands as the head of eToro and the founder of GoodDollar. In a statement, Assia explained that it’s GoodDollar’s goal to connect the unbanked masses of the world, an estimated 1.7 billion people, and allow every person access to basic financial assets.

Assia explained that there is hope that GoodDollar will stand to serve the next 100 million crypto users. The plan to do this is by way of freely distributing a new form of internet money, one that can be used to generate more economic activity within a global and local scale.

Prioritizing Economic Growth

A large number of countries have been debating regarding the concept of UBI. One of the key challenges to do so, however, is the matter of actually distributing the fiat among the citizens that need it in a proper, effective way. This can be easily seen with the COVID-19 pandemic, and the distribution of stimulus funds across the globe.

eToro stated that thousands of GoodDollar wallets have already been created, spread across various countries across the globe. These countries include places like Ghana, South Africa, Venezuela, and Argentina.

Assia explained that eToro is offering a framework allowing for wealth distribution and creation, doing so in a sustainable way. Assia also highlighted that it unites the interests of both the basic income recipients, as well as the capital holders.