Exclusive: New Author Of Bitcoin And Black America Talks Black Economics Amid Protests – Forbes

Isaiah Jackson, the author of Bitcoin and Black America, shares with me the story of how he found a solution with the new digital currency that originated in 2009 with the age-old problem of money, power, and racism in the United States of America. Unapologetically, Jackson, at one point in discussing how local currencies for Black communities would be more beneficial than the U.S. dollar, clarified his answer by saying, Leave us alone. I dont know how more bluntly to put it.

Talking to Jackson, I realized quickly just how much thought he has given all this. When I referenced how the greenbacks were produced in 1861 as a way to raise money for the North in Civil War, he broadened the discussion to include the Wildcat Banking era, a time when numerous types of currencies existed. He also expressed that he believes that the Federal Reserve System, created in 1913, was not the right direction for America, as Jackson explains how much value the dollar has lost since that time.

Amid discussion of what Jackson characterizes as a racist banking system, we delved into the concept of redlining, where banks would in the past literally draw red lines around communities that they wanted to avoid making loans. Jackson provided a picture of the present and future potential for digital redlining where coding in algorithms with emerging technologies like AI could produce the same results.

Finally, the highlight for this interview came when our discussion turned to the horrific irony aspect of how George Floyds arrest was over a counterfeit $20 bill. From the bill that pictures President Andrew Jackson on it, time will tell as to whether in the future a $20 bill with Harriet Tubman on it will be more or less common than Bitcoin in digital wallets for Black communities across America. For now, I present to you Mr. Jackson, author of Bitcoin And Black America, who offers a new FinTech take on a solution for Black economics.

Isaiah Jackson on his Book Tour for 'Bitcoin And Black America' at Howard University.

Jason Brett: You put two concepts together, Bitcoin and Black America, well before these riots started. Can you tell our readers a little bit about what brought you to the conclusion that your book needed a title like this and what you are trying to say.

Isaiah Jackson: So the Black America part, which is my community, for a long time, we have been distressed economically and there have been a number of solutions that have come about in our community that have not worked because we have the same median income as we had in the 60s. In my opinion, we need something totally different and dont need to keep talking about the same solutions over and over. Bitcoin has only been around the last 11 years. One of things I wanted to do was look at the circular economy that can happen with Bitcoin and apply it to the circular economy the Black community should have. Just providing solutions for us to have leverage in a system where we have not had leverage before. We dont have money usually to convince Members of Congress and we dont have leverage to keep out the police violence we have seen recently and that was the motivation to write the book initially. Going forward I want to make sure people have at least the option to have Bitcoin and to be economically successful.

Brett: Are we getting ahead of ourselves if we talk about Bitcoin or Digital Dollars before weve figured out how to increase broadband access in urban and rural areas? Without that connectivity it creates a digital divide. Is that a barrier and should the U.S. be working on developing infrastructure to solve this?

Jackson: As someone who has lived in urban communities where the phone service is poor, [I can tell you that] the phone service is worse in Black neighborhoods that are poor. Unfortunately that is a thing and the digital divide does exist. A lot of people with phones dont have laptops, but the good thing about Bitcoin is that you can use Bitcoin with just a phone and even in countries such as Nigeria and others that may not have that much tech, they have a surplus of phones. You can use Bitcoin instantly and you dont have to be very tech-savvy- just enough to download an app. The digital divide exists but Black people are very resilient and will find a way. If there is a solution to the problem, there wont be any sort of vibe that stops us.

Picture of protester at a Black Lives Matter protest after death of George Floyd holding a sign, ... [+] "The system is broken Bitcoin + Black America"

Brett: In terms of how the police are viewed, it is a lot different for Black America. Is it the same in terms of how Banks are viewed?

Jackson: Yes, and I believe its more not trusting banks by older Black people. I know a lot of my relatives and others have kept money in the mattress to save because they didnt trust banks back then. I used to think it was ludicrous- why would you not put it in a bank? Now, years later, I am starting to realize why. Banks control everything, all of the money. Its sort of a Catch-22: I may not like them but I have to use them. Some of the solutions have been Black-owned banks so that discriminatory loans can be avoided. A lot of the Black community is content with using Black banks. But in my opinion, there is still one more step to go. We still have to have leverage and they still have to adhere to the money laws we have.

Brett: One of the other ideas that has been talked about is making post offices contain banks that are part of the Federal Reserve. Do you think there would be more comfort in these communities to enable someone with a digital wallet [enabled by the post office] to hold Bitcoin and Digital Dollars?

Jackson: We could have Bitcoin ATMs placed at Post Offices. The level of trust of post offices would help people realize it is mainstream because some people are still scared. People could use stablecoin U.S. dollars for payments and Bitcoins for other things. So yes, I believe that is possible and the post office would be great.

Brett: Would you please explain how is Bitcoin different than a dollar and how is a stablecoin different than Bitcoin?

Jackson: Bitcoin is censorship resistant. It cannot be taken or stopped. It is also scarce, which creates a value proposition. Currently it is a store of value, at some point it will be a medium of exchange and then later, a unit of account. That is what our dollar is now, a unit of account and medium of exchange and it is similar to a stablecoin. A stablecoin is the digital representation of one dollar. Unfortunately we live in a system where our dollar has been devalued, over 99% since 1913. Even though we consider it stable, it does have volatility and inflation has contributed. Bitcoin is deflationary and encourages saving not spending and that is why we have seen the increase in value of Bitcoin over the years. The volatility of Bitcoin scares some people away, but however, as a savings account, it is the best-performing asset of the last decade.

Brett: Using Bitcoin would require retailers and businesses accepting them as well. How will people use it to buy groceries or basic necessities?

Jackson: Bitcoin has been added to over 100,000 businesses around the world. I think major retailers will add it- the only thing stopping them is regulation. There are third-party apps that are working to increase Bitcoin adoption, such as the Fold app. So they are one step away- they will adopt it at some point. Walmart already has a QR code in the checkout line.

Brett: During the Civil War, Greenbacks were created as paper currency. We have had tensions for years along these same lines. What should Congress do with Bitcoin and any political position that you have and how do you see that as potentially helping to solve some of the issues that exist today and help bridge the divide that exists?

Jackson: After the Civil War, we had Greenbacks and a bunch of different currencies. Their value was based on the community that used it. The number one time for opening Black businesses, and the second best time was in the late 1800s. Right after the Civil War when there were different currencies that you could choose whichever worked best for you. The ability for black-owned businesses to grow is how we got Black Wall Street and how we got Rosewood. We were able to flourish as a middle class because the currency was not controlled and we were not held to the standard that we have to use the dollar. We found a currency that worked better for us and the value goes up based on the community. That is what we are looking for. Giving people the option to use Bitcoin and other digital currencies is the same thing in digital form. Once Black people realize this is the currency that works for us, it may not be the dollar and that is fine. That is sort of the leeway we need- leave us alone. I cant say it anymore simply then that. If we are left to our devices and inflation doesnt kill our value, black people have flourished and vice versa. It is a very simple solution.

Brett: Are you struck by the fact that George Floyd was arrested for passing a counterfeit bill?

Jackson: The irony is amazing. The fact that a $20 bill is the reason for his death and sprung a lot of protests. While America printed trillions in counterfeit money of its own, The quantitative easing that has happened in this country for corporations is ridiculous. They are basically giving themselves counterfeit money and just keeping it. It is ironic. It is unfortunate. Digital payment solutions would prevent a counterfeit payment but it would have to trickle down over time because Im not saying he would have used a digital wallet but if he did, he definitely would not have a counterfeit bill involved.

Brett: So, the Bitcoin is a tech innovation that has created this ability to have digital money like in the 1800s that can allow Black communities to flourish?

Jackson: With the Bitcoin solution that I have discussed, everybody can win. Banks want control of money. People want Bitcoin. If we have a circular economy of Bitcoin, all banks have to do is accept Bitcoin businesses as customers of their banks. JP Morgan is now accepting businesses that accept Bitcoin and banks can get their profit that way. Banks would have to come up with a viable product that we would want. Banks need to go back and figure out why we need them and not vice-versa. In my opinion, it is not a knock on anybodys business. Long-term, we are going to find a solution and the banks will be left behind. Bitcoin is the best solution.

Brett: What led you to becoming an author and can you tell me more about your career?

Jackson: I went to NC State and studied Computer Science, and after college my first job was a teacher. Teachers are notoriously underpaid. I was 23 years old and barely making enough to live on, and was looking for ways to make money. I found out about Bitcoin from a roommate who was working at a financial services firm. We discussed it in 2013. Ultimately, I became a Bitcoin consultant and trader. Then I wrote the book, because 90% of my clients were Black people. I decided that I needed to write a book so people can get all of this information at the same time. The idea of the book started in 2016 when Mike Brown got killed in Ferguson. Four years later and we are back in the same place. This is a problem. Thats how I got started. Thats how the book came about. I am glad people are taking notice.

Isaiah Jackson with at the Black Blockchain Summit with

Brett: One of the important things as a compliance regulator is addressing the concern of redlining. I have done this. What about the possibility of digital redlining. Does Bitcoin already prevent that? How do we future-proof against this?

Jackson: Digital redlining will happen. CBDCs (central bank digital currencies) will be monitored under the guise of terrorism and money laundering. That is the reason why people have their money stopped. However, for some reason, people who have nothing to do with terrorism have their money stopped based on a certain amount, time periods, etc. All of those things go into digital redlining and this is censorship resistant. There is even going to be digital redlining with Bitcoin. Certain coins that move to certain addresses through exchanges are identified as being terrorist-linked and are shut down. That will move more transactions to peer-to-peer. That is why I feel like Bitcoin cannot be defeated. If you shut down one area, it is literally like plugging a hole. Nothing is ever going to stop it. Its software and if people consider it money, why regulate it? Fortunately we have a solution.

Amazon Best Sellers During Week of June 8, 2020 for Digital Currencies shows Bitcoin & Black America ... [+] in the #2 spot.

Brett: What is next for you?

Jackson: The second edition of Bitcoin and Black America is out next year. This one will be more in-depth and I will be introducing with a certain number of books. I had started my book tour last year but had to halt it due to the pandemic, but hope to start it again in August.

Brett: Thanks for your time.

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Exclusive: New Author Of Bitcoin And Black America Talks Black Economics Amid Protests - Forbes