I guess the limiting factor would be the time delay between money as GLO and money as cash. The faster that transition can happen, the more GLO can function as a pseudo-checking account.
Like as an EA, it might make sense to put savings in something like an index fund because it allows for greater yields that you could potentially donate or otherwise deploy. This savings yield would probably be like 7-8%, but would be harder to liquidate, so you wouldn’t want to 6 put all your money in it.
But a checking account has basically 0% interest per annum. GLO is basically 2% per annum (to Givedirectly). So even with the current limitations (i.e. Limited ability to spend with GLO), it could still function as an intermediate checking account. So, if I want to have 20k somewhat easily available and 4k of it readily available, I’d have 4k in my checking account, 16k in GLO. That 16k would be accessible as cash within a few days. Is my analysis correct?
That’s right! In the early phases, how hard it is to change GLO to fiat will be somewhat out of our hands, because at some point you’ll be touching either ACH or Fedwire. But again, the long-term vision is to build up the infrastructure, and the network of participating merchants, to make this as easy as possible.
I guess the limiting factor would be the time delay between money as GLO and money as cash. The faster that transition can happen, the more GLO can function as a pseudo-checking account.
Like as an EA, it might make sense to put savings in something like an index fund because it allows for greater yields that you could potentially donate or otherwise deploy. This savings yield would probably be like 7-8%, but would be harder to liquidate, so you wouldn’t want to 6 put all your money in it.
But a checking account has basically 0% interest per annum. GLO is basically 2% per annum (to Givedirectly). So even with the current limitations (i.e. Limited ability to spend with GLO), it could still function as an intermediate checking account. So, if I want to have 20k somewhat easily available and 4k of it readily available, I’d have 4k in my checking account, 16k in GLO. That 16k would be accessible as cash within a few days. Is my analysis correct?
That’s right! In the early phases, how hard it is to change GLO to fiat will be somewhat out of our hands, because at some point you’ll be touching either ACH or Fedwire. But again, the long-term vision is to build up the infrastructure, and the network of participating merchants, to make this as easy as possible.