Some low-income New Yorkers are receiving $12,000 in crypto under a new program – after that

Payments: USD 12,000 in stablecoin

Select New Yorkers are set to receive $12,000 in cryptocurrency payments thanks to a collaboration between GiveDirective – a nonprofit focused on alleviating poverty by putting cash directly into people’s hands – and Coinbase, a cryptocurrency exchange.

According to a recent Bloomberg report, this pilot program provides 160 low-income New Yorkers with $12,000 USDCtype of Stablecoin adopted for the US dollar and will be paid in one lump sum of $8,000 and five smaller payments of $800.

USDC is issued by Circle, a payments technology company. USDC is considered much less volatile than cryptocurrencies Bitcoin Because it is designed to closely track the price of the US dollar.

Recipients will have several options for how they could spend or hold their money. They can either leave it in their Coinbase account, transfer it to a traditional bank account (instant transfers have a 1.75 fee), use a Coinbase debit card, or withdraw it from an ATM as cash.

The new initiative comes on the heels of other UBI programs

This isn’t the first time Coinbase has tried to expand its efforts in cryptocurrency philanthropy. The new program comes on the heels of another Coinbase-led initiative that closed in 2023. The previous initiative, known as Givecrypto, was founded by Coinbase CEO Brian Armstrong.

According to Bloomberg, approximately $2.6 million in funds remaining from GiveCrypto has been allocated to this new program.

“Over the years, Givecrypto has distributed cryptocurrency to thousands of people in need, with measured short-term improvements in their outcomes,” a press release announces states shutting down the program. “Unfortunately, we were unable to create lasting impact with recipients who returned to the same baseline after they stopped paying.”

The new program aims to reflect this Universal Basic Income (UBI) projectsthat examine the impact that providing unconditional cash payments to people has on poverty.

So far, the evidence for UBI has been mixed. Some studies found that people worked less and spent more time on leisure activities after receiving UBI, while another study found that UBI resulted in debt repayment and reduced spending.