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How might a basic income cryptocurrency affect governments, states, and citizenship?

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Published: 11 Dec 2017 › Updated: 11 Dec 2017How might a basic income cryptocurrency affect governments, states, and citizenship?

How might a basic income cryptocurrency affect governments, states, and citizenship?

I’ve followed basic income closely, as I believe it’s a viable and desirable option for dealing with automation—and also, for generally improving the human condition. I’ve read many recent developments and arguments with pleasure, including an announcement today about a quasi-basic income in Quebec, progress with a pilot in my province of Ontario, and recent proposals for social welfare funds in Bloomberg and The New York Times. (I also donate to GiveDirectly.)

So I’m surprised that I hadn’t previously read much about the idea of a basic income cryptocurrency. It wasn’t until I joined Steemit and read posts such as this one and this one that the idea had occurred to me, though I have subsequently discovered Grantcoin and Mannabase. My interest was further piqued by a sidebar conversation with markkujantunen@markkujantunen about what the government’s role should be in distributing a basic income—if any.

And this all leads me to a thought: if a basic income cryptocurrency were actually successful, and widely distributed, it could ultimately unravel states and state-based citizenship. My thinking is as follows:

  1. If citizens receive a basic income cryptocurrency that their government doesn’t administer…
  2. And if people spend this cryptocurrency to purchase goods and services in an anonymous, untraceable way…
  3. Then a significant portion of various countries will have little economic involvement or attachment to their state (about 13% of people live in poverty in the US, for example)—they will not be taxed by their state, nor pay taxes to their state.
  4. Which may significantly weaken their political attachment to their state, given that voting would have negligible impact on their standard of living.
  5. Which would almost certainly be destabilizing to our current political systems and structures.

For this reason, I wonder if the biggest impact a basic income cryptocurrency might have is providing further impetus for governments to get ahead of the game and institute something themselves—before it’s too late.

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