All cryptocurrency is magically created from thin air, one way or another. It can be created via proof of work, or bought based on some future use you believe in. But it isn’t physical and making anything digital is essentially free.
We also have stablecoins, which are (if it isn’t a scam) backed by real money and aligned with a currency and serve no meaningful advantage over cash.
Either way, everybody wants to profit from crypto, or at the very least break even and get some functionality. But what if we seeded a cryptocurrency by giving it to a charity?
Charities of course already receive donations, so all we are changing is the format. I give the crypto service $100 cash, the money gets banked somewhere, and the charity gets 100 Charity Coins.
The charity can then spend it anywhere that accepts it, so we need merchants on board who charities usually spend with. And then wherever those merchants spend money, encourage them to accept it.
This seeds the cryptocurrency, which can circulate forever, or be redeemed for cash. That redemption would be 98% or something to cover costs and encourage circulation.
You can also buy Charity Coin directly from the exchange, and get 100 coins for $110. That 10% goes to all the involved charities on a pro-rata basis, determined by the amount of donations they receive.
But here’s the thing – charity money is cool. When you pay in Charity Coin, indirectly you are supporting it & promoting it, which makes you look good, and benefits the charities. Nobody knows if you bought it (giving 10% to charity) or received it from someone.
Because crypto can be tracked (anonymously). we can see how the donation not only helps the charity, but circulates throughout society. This will provide empirical evidence of how putting money into the economy stimulates it. And then governments can use that data to base their spending on. By actually knowing that $1 put into the economy increases the GDP by $5, or whatever. So the government could manage this, in return for the data.
And… it can be used for charity accountability, if we can see where they spend their coins.
To remove barriers to acceptance, the coin needs to be acceptable through existing payment mechanisms. The best/easiest way is via a bank or government operating it. Governments can mandate it, or a bank can call it a featue. Banks do give a lot to charity anyway, so this could be an extension of that.
