RE: Can Blockchains Revolutionise Social Welfare Programmes?
UK government were thinking of this some time ago, even running some trials, not sure what the outcome was.
The only problems I see with this isthe restrictions placed on the recipient, so s/he can buy healthy food, but what if the washing machine or car needs to be repaired? If you are elderly or have a large family these can be essential too.
Also what stops me selling my vegetables on a market stall and buying a burger with the proceeds? I think its more advisable to let people spend as they see fit, but then they must classify their spend and if behaviours are negative offer assistance. For example perhaps Im in a lot of debt (quite common for benefits recipients) and if you only let me buy healthy food them Im going to end up in court for not paying my debts. If we see that a person is paying most of their benefits to creditors the government can step in and manage the debt and ensure future debt is not incurred at un-sustainable rates.
Those are fair points. The American SNAP programme has a similar set of restrictions - no hot food, groceries only, etc. - though it's less restrictive. The beauty of this system, though, is that separate accounts can be set up for other uses. The government can introduce new tokens specific for utilities, medical expenses and whatnot to a NutriCoin blockchain, without having to spend a significant amount of money on more infrastructure and implementation. (At least, that's how it's supposed to work.)
I don't think it's possible to stop people from re-selling their stuff; means testing, income ceilings and audits could weed out people with the means to earn a separate income (like a market stall), but I think there'll still be people who will find a way to game the system.
Social aid can't be doled out as a one-size-fit-all measure. I think it should be part of a comprehensive scheme. If a welfare recipient needs NutriCoin for food aid but is also in deep debt, then the government should also intervene and assist with the debt. Blockchain can't solve everything, but I think it has the potential to help people develop tools to solve specific problems.