The nonprofit Glo has revealed plans to launch its Glo Dollar stablecoin on August 2nd. Glo aims to use crypto yields to help millions escape extreme poverty.
In an interview, Glo co-founder Jasper Driessens discussed the project’s objectives and how it utilizes traditional finance to support a non-profit stablecoin.
Glo is pioneering an innovative model of blending philanthropy with crypto to create a regulated stable token. By generating yields from collateralizing the Glo Dollar, the nonprofit seeks to sustainably fund poverty alleviation programs. The upcoming launch represents a major milestone for this noble initiative at the intersection of cryptocurrency and charity.
Glo Dollar is a new stablecoin from the nonprofit Glo, collateralized by fiat currency and low-risk assets like US Treasuries to maintain a 1:1 peg to the dollar. This model is similar to major stablecoins such as USDC and USDT.
What makes Glo Dollar unique is that it directs the yields earned on its backing collateral to charitable efforts focused on alleviating extreme poverty. Whereas yields would normally go towards profits, Glo Dollar’s structure allows it to apply them to philanthropy. This enables users to leverage stablecoin yields for social impact at no extra cost.
By generating interest in assets backing the Glo Dollar and channeling it into anti-poverty programs, the nonprofit can sustainably fund its mission through an innovative crypto model. Users can essentially tap into stablecoin yields to combat poverty without additional fees or donations.
Jasper Driessens has outlined plans for people to use Glo Dollar for regular savings and daily spending. He is excited about those unfamiliar with crypto putting some savings into Glo Dollar initially. Driessens said they are testing crypto debit cards so people could soon use Glo Dollar for grocery shopping, replacing checking accounts.
Even temporary use can generate significant yields for Glo’s nonprofit work, Driessens explained. He wants people to utilize Glo Dollar not just as a crypto asset, but as a replacement for fiat savings and transactions. This would maximize yields for funding poverty alleviation.
Driessens aims for the Glo Dollar to become part of daily finances – from savings to expenditures. He believes this level of adoption would allow the stablecoin to generate substantial ongoing funding to combat extreme poverty globally by redirecting traditional banking yields to humanitarian outcomes.
Jasper Driessens outlined three key reasons for the Glo Dollar:
- Firstly, it offers a new way for people who care about the world to help combat extreme poverty.
- Secondly, he gave an ambitious hypothetical – if Glo Dollar reached the combined market cap of Circle and Tether, it could potentially lift 10 million people out of extreme poverty.
- Thirdly, Glo Dollar will launch on August 2nd on Uniswap and Ethereum paired with USDC, later expanding across more platforms. The goal is for it to become a widely available universal stablecoin.
In summary, Driessens emphasized the significant humanitarian impact Glo Dollar could have at scale by redirecting crypto yields to lift people out of poverty. He reiterated the upcoming launch and plan for availability across platforms to grow adoption and maximize the funding generated for Glo’s charitable goals.
Jasper Driessens recognizes some criticism towards crypto but believes Glo Dollar can help improve its reputation. He said they see some in their community who dislike crypto making an exception for Glo Dollar due to its philanthropic angle.
The charitable element provides a unique way to drive early adoption and compete against dominant stablecoins like Tether and USDC. Driessens stated the nonprofit aspect gives them a passionate community, unlike most centralized stablecoins.
He thinks this offers a path to overcoming the early adoption challenge. By tying crypto to humanitarian outcomes, Glo Dollar can potentially appeal to skeptical audiences, fuel advocacy, and capture market share from established players. Its do-gooder ethos and community may be key competitive advantages.
When asked about Worldcoin’s universal basic income focus, Jasper Driessens said initially they saw themselves as a nonprofit competitor to Worldcoin. However, over time the projects have diverged significantly. Now they only occupy the same high-level category of crypto philanthropy.
He outlined two main differences – Worldcoin targets global UBI, while Glo concentrates specifically on extreme poverty. Also, Worldcoin has a free-floating crypto versus Glo’s stablecoin model.
Driessens acknowledged interest as a technologist in Worldcoin’s iris scanning “Orb” but said it has little relevance to Glo beyond both involving cryptocurrencies.
While Worldcoin has attracted more attention, the two take contrasting approaches to using crypto for good. It remains to be seen which gains more traction in achieving social aims. Though starting from a similar premise, Glo and Worldcoin now represent distinct visions for crypto-powered philanthropy.
To operate legally, Glo has partnered with stablecoin infrastructure company Brale, which holds the necessary US money transmitter licenses to issue regulated stablecoins, as Jasper Driessens explained.
Driessens said either you obtain all the required licenses yourself, which takes time and money, or partner with a compliant provider like Brale. This partnership approach allows Glo to focus on launching while making Glo Dollar usable for US users per regulations.
In summary, Glo has ambitious aims of using crypto yields to alleviate millions from extreme poverty globally. Its success depends on gaining adoption from crypto users and attracting non-crypto audiences with its charitable premise.
If Glo Dollar reaches its hypothetical goals, it could showcase the potential of incentivizing social good through crypto-economic models. However, it remains to be seen whether this new stablecoin can capture sufficient market share to meaningfully impact global poverty levels.
#Cryptocurrency #Stablecoin #GloDollar
