With societies polarized, cryptocurrency can bridge the gap
The world is undergoing sharp financial change, with the wealth gap seemingly snowballing. According to a recent report by development charity Oxfam, just 42 people hold as much wealth as the 3.7 billion who make up the poorest half of the world’s population. Inevitably, this trend is having a profoundly negative impact on societies. In so many cities and countries, the growing wealth gap is eroding the sense of togetherness, unity of purpose and ultimately of community, which has sustained these same societies for centuries.
There is a very real and urgent need to repair the situation and to find innovative and new ways of using money, in order to bridge the gulf between the ‘haves’ and the ‘have nots’. While there will always be rich and poor, money can still provide a shared purpose and common direction. In other words, money can still bring people together, rather than divide them. It can be inclusive, rather than exclusive.
The good news is that there is hope on the horizon. As the world changes, new technologies are coming to light. Innovative solutions are being developed which not only make a positive difference, but alter the very nature of entire industries. None more so than blockchain and the world of finance.
Blockchain is the technological foundation for the world’s growing number of cryptocurrencies. It enables financial transactions to be performed without the involvement of a central authority, such as a bank. Instead, each transaction requires the consensus of every user on the blockchain. Because blockchain makes the ‘middle man’ redundant, it is a social leveller. In financial terms, this means that blockchain can help make money more equitable, giving different sectors of society a shared interest in its profitability. The prospect of money as a communal commodity is nothing short of revolutionary.
But the blockchain revolution is not only about democratizing finance. Because blockchain enables direct transactions between people, businesses and institutions, it creates meaningful interactions between them. As such, it is the perfect platform for incentivizing positive, civic-minded behaviour. This can only enhance the lives of everyone, rich and poor alike.
Cryptocurrencies are already being considered by some governments, both local and national, as the platform for solving societal problems. The City of Berkeley in California is considering launching its own cryptocurrency as a means of subsidizing social housing, to combat the city’s homeless problem. Meanwhile, the New York State Assembly is considering legislation to create local cryptocurrencies, in order to boost local businesses and keep money within communities. At the same time, South Korea’s capital Seoul is mulling a city-wide cryptocurrency to be deployed for use in city-funded social benefits programs.
However, this does not even begin to tap the potential for blockchain and cryptocurrencies. The open source code that they use, by its very nature encourages widespread participation. Therefore, cryptocurrency can be so much more than a payment system. It hands municipalities, city-wide suppliers and others interested in impacting the community, direct access to residents and other stakeholders. As such, cryptocurrency can be utilized to financially reward positive actions.
Imagine if cities such as London and Stockholm rewarded carpooling or cycling, rather than punishing driving in the city centre. What if cities in the United States rewarded responsible waste disposal, rather than endlessly penalizing those who litter? Surely, the result would be a genuine boost in positive behaviour, increasing the chances of achieving city goals on emissions, recycling or almost anything else. In fact, it would mean that perhaps for the very first time, it really would pay to do good.
But this type of financial incentivization promises so much more than reaching specific city-wide targets. The cumulative effect is something deeper, even transformational for the societies we live in. Rewarding good deeds brings with it a sense of increased civic duty and enhanced social responsibility. We live in an age in which money appears to have divided and polarized societies more than ever before. But it doesn’t have to be that way. The potential of cryptocurrency to break down barriers and bring communities together could be a groundbreaking shift towards a better tomorrow.
