By Shang-Lun Lin
UBI Taiwan, the Bitcoin and Virtual Asset Development Association, recently had the distinct privilege of being invited by Legislator Dr. Ko Ju-Chun to participate in an in-depth dialogue at the Legislative Yuan. The event featured a discussion with one of the world’s most renowned advocates for Universal Basic Income (UBI), Dr. Sarath Davala, Chairman of the Basic Income Earth Network (BIEN). This pivotal meeting not only explored the urgent necessity of UBI in the age of Artificial Intelligence but also sparked innovative ideas about integrating UBI with blockchain technology.
As AI technology advances at an exponential rate, a scenario once confined to science fiction is rapidly becoming our reality: vast numbers of jobs are being automated, fundamentally disrupting traditional employment markets and economic models. In the face of this transformative wave, how can we construct a social safety net robust enough to meet the challenges of the future? This question was at the heart of our gathering, which brought together legislators, blockchain enthusiasts, our association, UBI Taiwan, and the Chairman of BIEN. The core focus was not merely on the philosophy of UBI, but on its revolutionary potential when combined with cutting-edge technologies like blockchain and cryptocurrency, as we seek a viable path forward for Taiwan.
The Clarion Call of the AI Era
In the past, technological revolutions primarily replaced repetitive manual labor. The impact of AI, however, is comprehensive. From blue-collar workers to professionals such as accountants, lawyers, and even business strategists, all are beginning to feel the pressure of AI-driven change. The data presented by UBI Taiwan at the meeting was stark: over the past two decades, real wages in Taiwan have remained largely stagnant, while the stock market index has surged fivefold and housing prices have more than tripled. The wealth gap between the richest and poorest segments of society is at a historic high.
Wealth is concentrating in the hands of a few technology giants and capitalists at an unprecedented pace, while the vast majority of the population, particularly the younger generation lacking accumulated assets, is mired in a state of “financial vulnerability.” UBI is proposed as a direct response to this systemic crisis. It is no longer a utopian fantasy but a necessary instrument for maintaining social stability and individual dignity. The philosophy underpinning UBI is to “unleash human potential,” enabling individuals to pursue self-actualization rather than being trapped in a struggle for mere survival.
How Blockchain Empowers UBI
Traditional welfare distribution systems are often plagued by high administrative costs and operational inefficiencies. Blockchain and cryptocurrency technologies, however, offer an unprecedentedly efficient, transparent, and low-cost pathway for implementing UBI.
- Efficient, Low-Fee Global Payments: Many international charities have already begun leveraging cryptocurrencies, such as stablecoins, for cross-border donations. A recent Bloomberg report highlighted a non-profit organization in New York that uses the Coinbase exchange to distribute UBI in the form of stablecoins to low-income households.
- Bitcoin as a Universal Store of Value: Consider the potential of integrating UBI with a “Universal Bitcoin Strategic Reserve.” Through the design of smart contracts, these funds could be locked and made accessible only at a specific time, such as upon reaching adulthood or retirement. This would serve as a foundational nest egg or pension for every citizen, allowing all to share in the value appreciation of the digital age.
- Precision and Flexibility through Smart Contracts: Blockchain-based smart contracts can execute complex distribution rules. For instance, a “smart clawback mechanism” could be designed to automatically reclaim a portion of the basic income from high-earners upon tax filing, ensuring that resources are directed where they are most needed and significantly enhancing fiscal flexibility and sustainability.
- From African Precedents to Taiwanese Potential: Dr. Sarath Davala shared his experiences in Africa, which has become a testing ground for UBI combined with cryptocurrency. He noted that even in regions with relatively underdeveloped infrastructure, mobile phone SIM cards can function as simple digital wallets, enabling the direct and successful delivery of assets to tribal communities. This experience powerfully underscores Taiwan’s immense potential. As a “Tech Island,” Taiwan boasts exceptionally high smartphone penetration, low device costs, and world-class internet coverage, with an estimated eighty percent of the population being almost constantly online. We are in an excellent position to realize a fully digitized UBI framework.
The Convergence of Philanthropy and Blockchain’s Decentralized Ethos
A noteworthy trend is the growing synergy between philanthropic organizations and the blockchain community. At the Asia Blockchain Summit (ABS), Taiwan’s largest blockchain conference, the organizers invited Master Cheng Yen of the Tzu Chi Foundation to deliver an opening address. Her speech, which drew parallels between the decentralized philosophy of blockchain and the values of equality and charity, resonated widely with attendees.
The underlying logic is shared: whether for UBI or charitable aid, the objective is to deliver resources directly and effectively to those in need. The core attributes of blockchain—decentralization, transparency, and immutability—directly address the long-standing challenges of trust and efficiency in traditional philanthropy. When the implementation of UBI incorporates blockchain technology, it transcends the scope of a mere government program and has the potential to evolve into a social innovation movement, propelled by the joint efforts of civil society, industry associations, and non-profit organizations.
A Crossroads in Defining Our Future
This meeting illuminated a profound shift: scenarios once considered futuristic are fast becoming our present reality. The social contract that has held for millennia—that human beings must labor to earn their means of survival—is being fundamentally challenged by the rise of AI. As more and more work can be easily automated, we must confront a foundational question: if a future society no longer requires as much human labor, on what will we base our value and our right to a dignified existence?
From this perspective, time is on UBI’s side. With every leap forward in AI technology, the arguments supporting UBI gain a firmer footing in reality. The discourse is gradually shifting from a philosophical debate of “whether we should” to a pragmatic planning process of “how we can.” This is precisely where blockchain technology can deliver its greatest value. UBI, as a potential global and borderless social safety net, has found its ideal technological counterpart in blockchain, a tool engineered for the frictionless, borderless transfer of value. Its decentralized, transparent, and efficient nature makes it the most suitable medium for realizing the vision of UBI.
The conversation has evolved. We are not merely discussing resource allocation; we are co-designing the new rules for an era of human-AI coexistence.
Founded in 2017, UBI Taiwan is a non-profit policy advocacy organization dedicated to exploring and implementing UBI solutions. It promotes the idea that the state should provide everyone with a regular, unconditional cash grant to secure basic livelihood and economic dignity, addressing social and economic challenges through research, experiments, and public campaigns for a fairer and more sustainable future.