Coinbase is partnering with the non-profit GiveDirectly to launch a program providing crypto stipends to low-income New Yorkers between 18 and 30.
The project will distribute USDC worth $12,000 in six installments to 160 residents selected by lottery.
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Using USDC to Relieve New York Poverty
GiveDirectly, a US-based non-profit that lets donors send money directly to the world’s poorest households, has partnered with centralized exchange Coinbase to launch a new pilot program.
The initiative, dubbed “Future First,” aims to alleviate poverty in New York City by disbursing money to low-income residents. GiveDirectly will administer the program, while Coinbase will fund it and provide the necessary infrastructure.
GiveDirectly will disburse $12,000 worth of USDC to 160 randomly selected New Yorkers over the next five months. The pilot will first give participants $8,000 up front and five subsequent deposits of $800.
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The program is the latest to study how well no-strings-attached support can improve the quality of life for people of low socioeconomic status. It’s also the first in the US to give out money in cryptocurrency.
Notably, Coinbase told BeInCrypto that its involvement will be limited to enabling the transfer of these funds on behalf of GiveDirectly.
The exchange will not be involved in the selection of the participants.
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Learning to Use Digital Currencies
The program will inevitably educate participants on how to handle crypto financial transactions. Because spending stablecoins is more complex than cash or debit cards, they must develop the essential skills to use the funds successfully.
Still, they have options. Participants can transfer the money from their Coinbase wallet into a traditional bank account. They can also use a Coinbase debit card to make purchases in stores or get cash from any ATM.
However, the most direct and easiest option is to keep the funds within their Coinbase account.
The initiative signifies a renewed push by Coinbase to use crypto donations to advance its vision for a broader digital financial system.
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Past Efforts at Crypto Giving
The pilot program isn’t the first time Coinbase has donated crypto to promote wider adoption of digital currencies.
In 2018, Coinbase CEO Brian Armstrong announced the launch of GiveCrypto, an organization that aimed to financially empower people by distributing cryptocurrency globally.
The organization would first raise money from cryptocurrency holders and then use those funds to distribute small payments worldwide to those in need.
By 2023, however, Coinbase abandoned the effort, citing the project’s inability to create lasting change. According to a Bloomberg report, Coinbase gave the leftover $2.6 million in funds to GiveDirectly, which then used them to seed the New York City pilot program.
Source: https://beincrypto.com/new-york-low-income-residents-crypto-stipend-coinbase/
