Coinbase-Backed Pilot Program Hands Out $12,000 in Crypto to Low-Income New Yorkers

A new pilot program funded by Coinbase is distributing $12,000 in the stablecoin USDC to 160 low-income New Yorkers aged 18-30. The initiative, named Future First, is administered by the nonprofit GiveDirectly and aims to test the effectiveness of cryptocurrency as a form of financial aid compared to traditional cash transfers. Recipients receive an initial lump sum of $8,000 and five subsequent smaller payments of $800 each. The program enables participants to either hold their funds in crypto, cash out, or use them with debit cards, offering insights into the usability and risks associated with crypto assets. The program's funding comes from Coinbase, which redirected $2.6 million from a previous initiative. While the transition to crypto could offer cost efficiencies and financial education, experts caution about the potential risks and volatility of stablecoins. Participants will be surveyed post-program to evaluate whether this method of aid provision creates new opportunities or challenges for them.

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