A group of young New Yorkers receives $ 12,000 in cryptocurrency as part of a newly guaranteed income experiment supported by Coinbase.
The program, called the Future Failed, selected 160 residents between the ages of 18 and 30 by the lottery to receive payments to the USDC, a stablecoin who was located in the US dollar. Distribution began last week by Coinbase Wallets, according to a Report By Bloomberg.
Crypto testing as a direct aid
Nonprofit Givedirectly, which runs cash-transfer programs in dozens of countries, oversees the pilot.
Unlike traditional guaranteed income trials that send recurrent payments for a long time, the future first provides recipients of a large $ 8,000 lump sum and five smaller $ 800 deposits. The approach, Givedirectly says, is designed to help participants make greater financial gestures, such as paying a security deposit or matrically.
The funding came from the Coinbase, which had previously left its own direct giving initiative but redirected $ 2.6 million in the remaining funds given. Darin Carter, who is leading the US policy and the advocacy of indigenous people in Coinbase, told Bloomberg that the program was intended to provide “financial support and crypto education for young New Yorkers.”
Promises and pitfalls
The use of crypto instead of cash increases both efficiency and risk. Givedirectly said sending costs to the USDC is pennies per move, cheaper than prepaid cards or bank wires. But critics warn that Stablecoins may lose their stress peg in the market, and young participants may be tempted to think about their rainy season.
Recipients can cash out banks, use Coinbase debit cards, remove ATMs or leave funds on their crypto wallets to earn 4.1% interest or buy other digital assets. American University Professor Hilary Allen told Bloomberg that this setup could remove some of the dangerous bets.
Program leaders plan to review participants afterwards to measure whether crypto distribution creates new opportunities or new obstacles. So far, some beneficiaries such as 25-year-old Luis Acero have said they are accepting help. “It will give me a lot of emotional, psychological silence,” he said.
