That's why we call it the ethical currency.
Glo presents a new way for people and companies to help fight extreme poverty. You can participate by swapping some of your normal money to Glo.
We distribute basic income by donating our profits to GiveDirectly, an NGO specialized in direct cash transfers to people living in poverty. They have been doing this for 10 years and are highly reputable. They're also efficient: of every $1 donated to GiveDirectly, $0.89 goes to recipients.
GiveDirectly is currently providing basic incomes in Kenya and Liberia. With more money, this can be expanded to more countries. Our ultimate goal is to provide a basic income for all 659 million people currently living in extreme poverty.
Of course, you can also directly donate money to GiveDirectly. With a monthly donation of just $35/month, GiveDirectly is able to lift one person above poverty, which is quite amazing.
This way we can scale up the fight against extreme poverty far beyond the amount of money people are willing to donate.
Initially, there's not much you can do with your Glo. You can keep it, redeem it to get your normal US dollars back, or send it to someone else. That makes Glo perfect for your cash savings.
Over time, we strive to make Glo a useful currency in the real world such that you can pay your bills and buy goods and services with your Glo. At that point, theoretically you could convert all your money to ethical currency and even receive your salary as Glo.
The idea of having a cryptocurrency that's always worth $1 is not new either. It's called a stablecoin, and crypto traders have been using them for years.
With Glo, there are two differences:
The crypto world currently has a need for about $150 billion of stablecoin. If Glo would replace 100% of that, the Glo reserve would contain $150 billion. Assuming a 2.5% Glo reserve rate, we'd be able to provide basic income to 9 million people.
To end extreme poverty, we need to grow much bigger. That's why our vision is for regular individuals to start using Glo as well—first just for savings, and then as everyday money in the real world. Our rough estimate is that replacing 7% of all money would generate enough money to end extreme poverty.
That's not to say we're not focused on crypto users. We aim to become the #1 stablecoin in the crypto world. In fact, we believe a non-profit issuer can make for a more trustworthy stablecoin. If you're currently using stablecoins, here's why you should consider switching to Glo.