Ending extreme poverty with a stablecoin with Jasper Driessens

instead you decided to be here and learn about how we are planning to end extreme poverty we have a stable coin so I really appreciate you being here and I'll make sure to keep you entertained very quickly who am I I am Jasper I'm one of the co-founders and the CMO of the glow Foundation the glow Foundation is uh this is us this is our team we're a non-profit we're Incorporated in the U.S we're applying for 501c3 status um our team is global we work remotely we come from companies like Anchorage Circle Google uipath and Founders pledge and uh like I said we're a non-profit so how do we keep the lights on well we are backed by said sobrendi who is the co-founder and CEO of gitlab um he makes donations so he loses 100 of that money uh all our employees including myself receive salaries there is no equity there's no pre-mine this is a proper non-profit we have no investors and our vision for the world is zero extreme poverty and specifically we want to give everyone in extreme poverty a basic income that's our goal so here's what we're building we're building the glow dollar the glow dollar is a stable coin thicker symbol USD glow or centralized we're 100 Fiat backed so we're a very boring kind of stable coin the model is quite similar to usdt and usdc um and I actually have uh an announcement to make this is a heart of the press our CTO and the rest of our team worked very hard overnight to make this happen but after more than six months of preparation a couple hours ago USD glow actually went live on uniswap [Applause] so our our markets Gap is close to zero but we exist now this is not Theory anymore this is a real stable coin and you can actually buy it right now on unit swap why would you do that well there's one big difference between USD glow and some other stable coins when you use glow fewer people will live in extreme poverty because of you our early Community says things like um this is my favorite crypto projects ever I think this person is in a room here with us actually um hey there he is other people say this is quite literally one of the best ideas I've ever heard and some people even say crypto has no use cases uh except glow so I hope that at the end of this talk some of you fall in one of these three buckets and my talk consists of two parts I will start with talking about glow in a kind of bullish way so I'm going to explain how we will be the number one stablecoin I will lift 7 million people out of poverty and how by doing so we save crypto's reputation but then I'm gonna turn hyper bullish and I'm going to explain to you how glow will be the first cryptocurrency to finally reach Mass adoption as a means of Exchange in everyday life and how that allows us to replace nine percent of all the money in the world and if we get there we will be able to give every person in extreme poverty a basic income okay so let's get started a quick crash course how do stablecoin companies make money how many of you actually know how they make money how does the business model of circle and Setter work okay very quick let's say we have a fictional stablecoin usdr uh it's issued by a company called redheads which if you reverse it's called tether but we're only talking about red hat today um and the issue is stablecoin that's one to one backed by Fiat Reserve so at any given moment there is an amount of usdr tokens out there in the world let's say it's 71 billion and then this company makes sure that they have the same amount of Fiats like real US Dollars sitting in an off-chain Reserve so those are like bank accounts it's like one big bag of dollars and they make sure that this is always the same so anyone can Mint new new SDR but to do that you have to send this company a real dollar so let's say you want to Mint 1 billion dollars of this sabercoin you send the company a billion dollars now their Reserve is a bit bigger and then they means the tokens and send it to you this can be reversed so you can send them the stable coins back they burn them and then after that's done they send you your real dollars back so how does this company make money because so far we've only seen them move money around well the trick is that they actually invest a part of that Reserve so they don't hold 100 in cash they keep about 20 in cash and they invest the rest in t-bills um so stablecoin companies they infest your Fiat and they earn yields doing so so how much do they earn well we can estimate that let's say they invest 80 percent of their Reserve we could just look at the Historical average yield of T bills which is about 3.4 percent and then you arrive at an estimate of these companies making 2.7 of whatever their Market Gap is in a given year that's a lot of money so today tether has a markets gap of 71 billion if they make 2.7 of debt per year they earn almost two billion dollars per year just in passive income so per day that's five million dollars um in passive income so issuing stable coins is a very very profitable business model now why am I telling you that it's because Globe will work the same way with one big difference we're gonna donate all of that money to give people an extreme poverty a basic income do we do that in some weird crypto way no we do it in a very old school way um how many of you have heard of the NGO called gift directly okay there's a couple of you out there awesome so give directly is not a crypto thing it's just a classic charity you give them money and they they distribute it as basic incomes in Kenya malavi Liberia recipients in extreme poverty get the basic income for a couple years um no strings attached the money goes directly to them through mobile payments like m-pesa and um people donate to give directly fidelic donated to give directly a while back um and if you give them 480 dollars then give directly will be able to lift one person out of extreme poverty including transaction costs and all of these things now that's interesting because that number is what we will make per year in interest for every eighteen thousand dollars are of our market cap um that's that 2.

7 right so your driving needs 500 per year to live one percent of poverty we make that every time our market cap Grows by 18K which means that whenever our market cap Grows by 18K we can lift one more person out of extreme poverty so we literally have a stable coin where if the markets Gap grows the number of people in extreme poverty goes down this means that if you hold stable coins then you can lift people out of poverty for free so let's say you are the Klima Dao how many of you know the clean model they're holding almost 10 million dollars in stable coins if they would hold it in Globe that's 500 people out of poverty the gates going down could lift almost 600 people out of poverty in this way uh the ens Dao governing the dot Eve domains if they would hold their stable coins and glow they would lift almost a thousand people out of extreme poverty um and the same goes for the pleaser though now this comes at no cost to the Dow they're they were holding stable coins anyways they're now just holding a different stable coin they're not paying any money and also it goes completely automatically all the work is being done on the back end so that's pretty cool thing I think and there isn't to be a limit to this model so you know the current stablecoin market is 130 billion dollars if Globe captures 15 of that markets we would already be able to lift 1 million people out of extreme poverty which I think is an awesome Milestone to reach of which you know I think we would be very proud but I think as we grow traction then more and more and more people will realize that it's if they're already using stable coins it's pretty much a no-brainer you can just switch over to glow and then lift people out of extreme poverty for free so if we would grow to the size of tether or put differently if Tedder would do what we are going to do we would be able to live four million people out of extreme poverty and in a theoretical case that we would dominate the whole stablecoin market and everyone would be using only glow um we believed in seven and a half million people out of extreme poverty um that's X1 um and um yeah this is the journey we're starting today um and it would be amazing if we get to that point of course then again seven million people is nowhere close to 700 million people so how the hell do we get there okay well now I'll turn hyper bullish um but just for a second I want you to forget everything I just said uh in fact I want you to close your eyes and forgets that we're even at a crypto conference forget that you are a crypto person close your eyes and imagine you're at a difference conference imagine you are at XP Denver an annual conference on eradicating Extreme poverty you can open your eyes again welcome to XP Denver we're going to talk about eradicating extreme poverty and we'll start by giving an oversimplified status update on how we're doing in the fight against extreme poverty very oversimplified the status is um what one might call an in first sandwich because there's bad news and then there's good news and then there's bad news so the bad news is Extreme poverty exists and it sucks almost 10 of the world's uh lives in extreme poverty so that means they're surviving on less than two dollars and fifteen cents per day it's the worst kind of poverty so I think we all agree that we want to do something about that that's the bad news and it doesn't help that progress is stalling and the World Bank thinks that we won't meet our goal to end extreme poverty by 2030. so we're not doing well but there's also good news and that is that true experimentation and measuring it turns out that there is a surprisingly simple Intervention which is just give people money it sounds too simple to be true but it it seems to work really well in countries like Kenya and Malawi it seems to really help people get to the next phase in life of course if you give them a basic income of one dollar a day people are still living in poverty but you help them meet those basic needs such that they can plan ahead a little more and the nice thing about cash is that they can do with the money what they think is best for their family which obviously is different from person to person and from family to family and from Village to Village will basic incomes work everywhere no in a country like North Korea there is Extreme poverty but you cannot really go in and give people basic income so there needs to be some base level of uh you know political stability and freedom and infrastructure but we got new ones aside basic incomes work really surprisingly well so what's holding us back what's stopping us from just giving more people an extreme poverty basic incomes and solving this problem like we have a big looming problem we know the solution so what's holding us back well the problem of giving money away is that you need money to give away and there aren't enough donations in the world to really scale up this idea of giving basic incomes and the problem is that most of the money in our lives is money we do not give away so the average U.S household um controls about a hundred thousand dollars every year with which I mean that they're spending 60k they keep 40K in a savings account and they're donating over two thousand dollars so only a very tiny slice of all of the money that flows through a U.S household is money that they're giving away most of the money is money that they keep for obvious reasons even worse is that of the money that they donate only 10 actually ever goes overseas so um if we convince all U.S households to stop donating to whatever they're donating right now and send it to a gift directly that would only give us 250 per household um if you do this if you sum this up for all households in the US um and then do it for all other countries we have a total addressable Market of 240 billion dollars per year but to give everyone an extreme poverty a basic income we would need and this is oversimplified it's very awesome flight but we would need 480 for every 700 million people which is 336 billion dollars per year donations so all the money that we're donating overseas only on basic incomes we still would not have enough money to give everyone an extreme poverty-based income so it just doesn't fit within that this tiny slice so to end extreme poverty we need a solution that is donation independent and that sounds impossible right like how can you financially contribute to a charity without actually giving money away well that is exactly what holding the glow dollar is glow is not just a stable coin Beyond crypto it is a dollar with philanthropy embedded into it so if you hold glow you're basically doing donation less philanthropy it's like before your folding glow you own dollars and afterwards you still own dollars but someone in extreme poverty is getting a basic income because of you so we wanna builds towards a future where it's not just crypto people who are holding glow it is a form of money in our everyday life that we can use for our savings account also receive our salary in um pay companies with and if we move towards that world we can get to a point where 100 of the money in our lives is contributing to reducing extreme poverty um you might be wondering why would someone do this well I think you could ask the same question on why would someone decide to drive electric or why would someone decide to become a vegetarian it sounds a bit weird but the glow dollar is kind of like the electric vehicle of money and using glow in your daily life is kind of the Financial equivalence of becoming a vegetarian it's just something you do that doesn't really help you but it also doesn't really hurt you and if you do it you know that you contribute to a cause that you care about um this is the journey we're starting today like I said our market cap is close to zero so we're going to take this step by step um every time our market cap Grows by 18K we can live one more person out of extreme poverty and um you can actually help us get there so our goal is mass adoption and we think we will be able to get dirt but every new thing has to start some work so if you think this is an awesome project then you can do two things wait and see until we get somewhere or after this talk go on uniswap buy a little bit of glow um and even better would be if you go to glowdollar.

org we have something which we call the early adopter program where you can sign up join our community and help us reach the end of extreme poverty thank you so much