People in this state are receiving $12,000 in cryptocurrency as part of a new program

Payments: $12,000 in stablecoin

New Yorkers are set to receive $12,000 worth of cryptocurrency payments thanks to a new program from GiveDirectly, a non-profit organization focused on alleviating poverty by providing cash directly to people. The program is funded through Coinbase – a cryptocurrency exchange platform.

According to a Bloomberg report, this pilot program provides 160 low-income New Yorkers with $12,000 worth of USDC, a type of stablecoin pegged to the US dollar, which will be paid out in one lump sum of $8,000 and five smaller payments of $800 each.

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

Recipients will have some options on how they choose to spend or keep 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 in cash.

The new initiative comes on the heels of other universal basic income programs

While the program is managed by GiveDirectly, the new program comes as a result of another initiative run by Coinbase that shut down in 2023. The previous initiative, known as GiveCrypto, was founded by Coinbase CEO Brian Armstrong.

According to Bloomberg, about $2.6 million of the remaining funds from GiveCrypto have been allocated to this new program.

“Over the years, GiveCrypto has distributed cryptocurrencies to thousands of individuals in need, with short-term improvements in its results,” said the press release announcing the discontinuation of the program. “Unfortunately, we were unable to make a lasting impact with recipients, who returned to the same baseline after payment stopped.”

The new program aims to mirror universal basic income (UBI) projects, which study the impact on poverty of providing people with unconditional cash payments.

So far the evidence for universal basic income has been mixed. Some research found that people worked less and spent more time on leisure after receiving UBI, while another study found that UBI led recipients to pay off debt and spend less.