A group of New York young people is receiving $ 12,000 in cryptocurrencies as part of a new guaranteed income experiment backed by Coinbase.
The program, called Future First, selected 160 residents between the ages of 18 and 30 by lottery to receive payments in USDC, a stablecoin linked to the US dollar. The distribution began last week through Coinbase wallets, according to a Bloomberg report.
Cryptography test as direct help
The non -profit organization GIVEDIRECTLY, who has executed cash transfer programs in dozens of countries, is managing the pilot.
Unlike traditional guaranteed income evidence that sends recurring payments for long periods, Future First offers the recipients a large global sum of $ 8,000 and five smaller deposits of $ 800. The approach, says GiveDirectly, is designed to help participants to make larger financial movements, such as paying a security deposit or covering the registration.
The financing comes from Coinbase, which previously abandoned its own direct delivery initiative, but redirected $ 2.6 million in remaining funds to Giveedirectly. Darin Carter, who leads to the policy of the United States and the base defense in Coinbase, told Bloomberg that the program is intended to provide “financial support and cryptographic education for New York young people.”
Promises and difficulties
The use of crypt into cash adds efficiencies and risks. GIVEDIRECTLY says that sending cents of USDC costs by transfer, much cheaper than prepaid cards or bank cables. But critics warn that Stablecoins can lose their plug in market stress, and young participants could be tempted to speculate their unexpected gain.
The recipients can charge banks, use Coinbase debit cards, retire to ATMs or leave funds on their cryptographic wallets to earn 4.1% interest or buy other digital assets. The law professor at the American University, Hilary Allen, told Bloomberg that this configuration could push some towards risky bets.
The program leaders plan to survey the participants later to assess whether the distribution of cryptography created new opportunities or new barriers. For now, some beneficiaries such as Luis Acero, 25, say they appreciate the aid. “It will give me a lot of emotional and psychological peace of mind,” he said.
