Low-Income New Yorkers Receive $12,000 in Stablecoin as Part of Coinbase and GiveDirectly Pilot Program

A new pilot program by GiveDirectly and Coinbase is giving 160 low-income New Yorkers $12,000 in USDC, a stablecoin pegged to the U.S. dollar. The initiative is funded with about $2.6 million from Coinbase's now-defunct GiveCrypto program. The program takes inspiration from universal basic income (UBI) experiments that look at the impact of unconditional payments on those in poverty. Recipients will have the option to hold or spend their money as they see fit.

A new pilot program by GiveDirectly and Coinbase aims to provide financial support to 160 low-income New Yorkers by distributing $12,000 worth of USDC, a stablecoin pegged to the U.S. dollar. The initiative is funded with approximately $2.6 million from Coinbase's now-defunct GiveCrypto program Some Low-Income New Yorkers Are Receiving $12,000 in Crypto as Part of a New Program—Here’s Why^[1].

The program, called "Future First," will disburse $12,000 worth of USDC to each of the 160 participants selected through a lottery. The funds will be distributed in six installments: an initial lump sum of $8,000 followed by five monthly payments of $800 each. Recipients will have the option to hold or spend their money as they see fit, with various options for managing their funds, including leaving them in their Coinbase account, transferring them to a traditional bank account, or using a Coinbase debit card Low-Income New Yorkers To Receive Crypto Stipend Via Coinbase^[2].

The initiative is inspired by universal basic income (UBI) experiments that study the impact of unconditional cash payments on poverty. The program's goal is to provide no-strings-attached financial support to low-income individuals and evaluate the effectiveness of cryptocurrency in addressing poverty. This is the first U.S.-based program to give out money in cryptocurrency.

Coinbase's involvement is limited to facilitating the transfer of funds on behalf of GiveDirectly, which will handle participant selection and program administration. The program is part of Coinbase's broader efforts to promote the adoption of digital currencies and increase economic freedom Low-Income New Yorkers To Receive Crypto Stipend Via Coinbase^[2].

The pilot program marks a renewed push by Coinbase to use crypto donations to advance its vision for a broader digital financial system. Previous efforts, such as GiveCrypto, aimed to distribute cryptocurrency globally but struggled to create lasting change. The funds remaining from GiveCrypto were allocated to the New York City pilot program Some Low-Income New Yorkers Are Receiving $12,000 in Crypto as Part of a New Program—Here’s Why^[1].

The program's success will be evaluated based on its ability to improve the quality of life for participants and provide insights into the potential of cryptocurrency as a tool for poverty alleviation. As the program progresses, it will also educate participants on how to handle crypto financial transactions, potentially expanding their access to digital finance tools.