TL;DR

• Core Issue: To respond to labor displacement caused by AI automation. The establishment of digital identity authentication systems to verify eligibility for welfare benefits is being discussed.
• Importance: Without sophisticated authentication systems, social inequality may deepen due to administrative omissions. The efficiency of welfare safety nets risks being compromised.
• Action Plan for Readers: Corporations and public institutions should review ways to integrate existing administrative networks with Decentralized Identity. Technology and establish complementary measures for the digitally marginalized.

Example: A user gazes into a mobile phone camera to verify their identity. An algorithm analyzes the iris patterns to generate a unique identification code and compares it with recorded data. Without paper certificates or complex approval processes, immediate support funds are transmitted to this user whose income has decreased due to technological shifts.

Current Status: The Labor Crisis and Experiments Proven by Data

The impact of artificial intelligence on the labor market is being confirmed through specific figures. According to an analysis by the International Monetary Fund (IMF), approximately 40% of global employment is within the zone of AI exposure, and this figure reaches 60% in advanced economies. The Organisation for Economic Co-operation and Development (OECD) has classified about 27% of jobs in member countries as high-risk for automation, noting the potential for structural changes in the labor market.

In this context, Universal Basic Income (UBI) experiments have entered the stage of securing concrete data. The SEED program in Stockton, USA, tested income stability by providing $500 monthly for 24 months to recipients selected via a Randomized Controlled Trial (RCT) algorithm. OpenResearch conducted experiments combining administrative and commercial data by selecting subjects aged 21 to 40 whose household income was less than 300% of the federal poverty level.

Technical methods are also evolving. 'Circles UBI,' which started in Berlin, utilized a blockchain-based trust network protocol to build a community-level currency system. Projects such as Worldcoin propose technical alternatives through iris-recognition-based digital IDs to prevent duplicate claims and prove personhood, seeking to supplement the limitations of existing administrative data.

Analysis: Trade-offs Between Efficiency and Exclusion

The introduction of digital identity authentication systems increases administrative efficiency but simultaneously poses the challenge of digital exclusion. The World Bank's ID4D initiative points out that a significant portion of the global population lacks legal identification.

1. Conflict Between Technical Unemployment and Immigration Policy Leading AI nations tend to simplify visa screenings to attract skilled talent while restricting the influx of low-skilled workers to protect domestic labor. In this process, Digital IDs may be utilized as tools for selective control. Workers or refugees from countries with inadequate authentication systems are at risk of being marginalized from welfare systems, which could solidify international inequality.

2. Confrontation Between Centralized and Decentralized Authentication Existing systems centered on tax authorities or social security numbers allow for easy data integration but can be vulnerable to security incidents and privacy breaches. Conversely, blockchain-based Decentralized Identity (DID) help ensure personal information sovereignty, but more technical and legal verification is required before it can be established as a national administrative standard. While some countries like Ethiopia and Gabon are attempting inclusive policies, political consensus is still lacking to expand these as global standards.

Practical Application: Roadmap for Improving Digital Administration

Universal Basic Income and Digital ID in the AI era represent a process of reconstructing the social contract. Policy makers and technology leaders should focus not only on system efficiency but also on resilience and inclusivity.

Implementation Scenario: Tailored Welfare Delivery for Local Communities Local governments can monitor regional employment indicators in real-time and provide retraining subsidies or basic income via Digital IDs to workers in industries with high AI replacement rates. To ensure accessibility, biometric-based offline kiosks should be operated in parallel for those who do not own digital devices.

Immediate Tasks:

• Conduct a comprehensive survey of customer or citizen data to identify individuals with missing identity verification.
• Simulate the security, costs, and benefits of transitioning existing centralized databases to decentralized identity technology.
• Design hybrid support processes that combine biometric technology with face-to-face service windows for the digitally vulnerable.

FAQ

Q: Will it be hard to receive basic income without a Digital ID? A: Technically, a means of authentication is necessary. However, in accordance with the World Bank's ID4D principles, complementary measures such as relaxing residency proof requirements and verifying identity through community help ensure are being discussed. The provision of offline authentication methods for those without digital devices should also be pursued.

Q: Has blockchain-based UBI ever been implemented as an actual national policy? A: While experiments at the private or community level are active, there are no confirmed cases of a national administrative system fully adopting blockchain IDs to distribute UBI. Currently, the field is at the stage of reviewing technical feasibility.

Q: How will tax revenue be secured if AI replaces jobs? A: Proposals such as a 'Robot Tax' on the excess profits of companies benefiting from AI automation are being discussed. However, decisions are likely to vary by country, intertwined with specific immigration restrictions or protectionist labor policies.

Conclusion

Changes in the labor market caused by AI demand the construction of a new social system. Universal Basic Income is a means of sharing the fruits of technological progress. Digital identity authentication systems intended to realize this can only gain legitimacy if they prove universal accessibility for everyone, moving beyond mere technical sophistication. We should pay close attention to how 'technology that proves humanness' reconstructs social trust.

References

• 🛡️ openresearch unconditional income study (ORUS) - UChicago Urban Labs
• 🛡️ Study: Guaranteed income improved people's health during pandemic - UPenn SP2
• 🛡️ Building Inclusive and Trusted ID systems to Empower People and Meet the SDGs - ID4D
• 🛡️ AI Will Transform the Global Economy. Let’s Make Sure It Benefits Humanity.
• 🛡️ OECD Employment Outlook 2025
• 🏛️ Impact of a Blockchain-based Universal Basic Income Pilot: The case of Circles UBI currency