Impact of a Blockchain-based Universal Basic Income Pilot: The case of Circles UBI currency

Abstract

Circles UBI is a blockchain-based Community Currency System (CCS) that has been active in Berlin (Germany) since October 2021. The Circles Coop, which launched the project in 2021, was shut down in December 2023. In this paper, we show the results of a survey carried out between October and November 2023. The respondents were twenty-five individuals involved in various ways in the Circles' network. The main emerging narrative points out how their participation was deeply motivated by their identification with the values and ideals of the Circles community. Among them, we selected five profiles that stood for their difference in type and degree of involvement. Finally, we report some stories of economic linkages that suggest a positive externality in adopting a local community currency. To our knowledge, this is the first qualitative study of a universal basic income designed as a community currency and adopting blockchain technology. This pilot project was a remarkable experiment for its adopted advanced technological and social innovations. In fact, as far as we know, the integration of basic income and local currency features has been experimented with only in two other cases (Maricá, Brazil and Barcelona, Spain) and none of them adopted a decentralized ledger system. In this work, we try to outline strengths and weaknesses that emerged after about two years of activity. For this reason, future researchers and activists interested in this field will find valuable information.