Coinbase is collaborating with the non-profit GiveDirectly to launch a program offering crypto stipends to low-income New Yorkers aged 18 to 30.
The initiative will distribute USDC equivalent to $12,000 in six installments to 160 residents chosen via lottery.
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Using USDC to Mitigate Poverty in New York
GiveDirectly, a U.S.-based non-profit that enables donors to send money directly to the world’s neediest households, has teamed up with centralized exchange Coinbase to launch a new pilot initiative.
This program, named “Future First,” seeks to alleviate poverty in New York City by distributing funds to low-income residents. GiveDirectly will run the program, while Coinbase will finance it and provide the necessary infrastructure.
GiveDirectly will distribute $12,000 in USDC to 160 randomly chosen New Yorkers over the next five months. Participants will first receive $8,000 up front, followed by five additional payments of $800 each.
“We sought to partner with a U.S.-based non-profit whose mission aligns with ours. Our aim is to enhance economic freedom globally and leverage the transformative potential of blockchain technology for those who need it the most,” a Coinbase spokesperson shared with BeInCrypto.
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This program represents the latest effort to examine how unconditional support may enhance life quality for those of low socioeconomic status. It also marks the first instance in the U.S. of distributing funds via cryptocurrency.
Importantly, Coinbase clarified to BeInCrypto that its role will be limited to facilitating the transfer of these funds on behalf of GiveDirectly.
The exchange will not partake in the selection of participants.
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Understanding Digital Currencies
The program will inevitably educate participants on managing crypto financial transactions. Since utilizing stablecoins is more complex than cash or debit cards, participants must acquire essential skills for effectively using the funds.
Still, they will have options. Participants can transfer their funds from a Coinbase wallet to a traditional bank account or use a Coinbase debit card for in-store purchases or to withdraw cash from ATMs.
However, the simplest and most direct option is to retain the funds within their Coinbase account.
This initiative signals a renewed commitment from Coinbase to leverage crypto donations to further its vision of a broader digital financial ecosystem.
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Previous Initiatives in Crypto Giving
This pilot program isn’t the first instance of Coinbase donating crypto to foster wider acceptance of digital currencies.
In 2018, Coinbase CEO Brian Armstrong introduced GiveCrypto, an organization aimed at empowering individuals financially through cryptocurrency distribution globally.
The organization first sought donations from cryptocurrency holders and then employed those funds to distribute small payments worldwide to those in need.
By 2023, Coinbase had ceased this effort, citing the project’s failure to generate lasting change. A Bloomberg report indicates that Coinbase donated the residual $2.6 million in funds to GiveDirectly, which in turn used them to launch the New York City pilot program.
