Coinbase is funding a pilot that will provide $12,000 worth of USDC to 160 low-income New Yorkers. This program, managed by Givedirectly, assists recipients in researching how cryptocurrencies are used and exchanged.
Coinbase funds ‘future-first’ universal income pilot in New York
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Coinbase will fund a Universal Basic Income (UBI) pilot to benefit low-income New Yorkers, and will also study the impact of providing these funds in cryptocurrencies.
In the pilot, dubbed “Future First,” 160 New Yorkers will be selected to receive the equivalent of $12,000 in USDC, Circle’s flagship stablecoin. There are no conditions attached, meaning there are no conditions on the spending.
Payments will be made in 6 installments over 6 months. The first payment will be $8,000, and the remaining $4,000 will be paid in five $800 increments. Givedirectly is a nonprofit organization that has implemented programs of this kind in other latitudes, including Kenya, Liberia, Rwanda, and Mozambique.
There is a potential downside to this focus, as Hilary Allen, a law professor at American University’s Washington School of Law, told Bloomberg. Distribution of cryptocurrencies could encourage citizens who benefit from this to invest in cryptocurrencies such as Bitcoin.
“We can say that giving money in this way is very much intended to facilitate receiving that money to bet on Bitcoin, because the Bitcoin will be stored as a cryptocurrency in a cryptocurrency wallet on a cryptocurrency exchange,” she stressed.
Nevertheless, Givedirectly’s Emma Kelsey said one of the benefits of cryptocurrency is that it costs less than 30 cents to issue the first batch of $800 payments. At the end of the pilot, the platform will survey participants about their experiences and whether cryptocurrencies facilitated or created a barrier to managing these funds.
Why is it relevant?
Coinbase’s experiment has two purposes. The aim is to determine the impact that this free income has on the lives of participants and consider the relevance of providing this support in cryptocurrencies.
Given the rise of artificial intelligence (AI), the issue of universal basic income (UBI) has become a relevant topic as experts predict that some entry-level jobs will be taken over by agents in the near future.
read more: Will AI make universal basic income a reality? Here’s how to implement it
I’m looking forward to it
If this pilot is successful, it will help prove that cryptocurrencies are an effective means of delivering these funds to people who have not yet been exposed to the technology, and will serve as evidence of blockchain’s versatility and stability.
FAQ
What initiatives is Coinbase funding in New York?
Coinbase is funding a universal basic income (UBI) pilot called Future First, which aims to provide financial support through cryptocurrencies to low-income citizens.How and how much can participants receive?
The pilot will distribute $12,000 worth of USDCCircle’s stablecoin, 160 New Yorker without spending requirements.How is payment structured?
Payments will be made in 6 installments from the 1st installment. $8,000 One-time payment followed by 5 payments $800 each for over 6 months.What are the potential concerns about cryptocurrency payments?
Experts are concerned that receiving funds in cryptocurrencies could encourage participants to invest in volatile assets such as Bitcoin, which could affect their financial management.
