After years of talk about crypto’s “real world” potential, a group of New Yorkers is about to find out what it looks like in practice.
A new Coinbase-backed pilot program called Future First is handing out $12,000 in cryptocurrency to 160 low-income residents, testing whether stablecoin aid can work as effectively—or better—than traditional cash transfers.
Recipients chosen by lottery, are all between 18 and 30 years old. Each one will get an $8,000 lump sum followed by five additional $800 payments, delivered in USDC, a dollar-pegged stablecoin. The funds are distributed through Coinbase wallets, and participants can decide whether to hold them in crypto, cash out to a bank, or spend them directly using Coinbase debit cards.
The nonprofit, GiveDirectly, known for running no-strings-attached cash transfer programs around the world, is administering the pilot. Unlike most guaranteed-income trials that focus on steady monthly payments, this one is designed to give recipients a mix of immediate breathing room and smaller follow-ups—potentially enough for bigger financial steps, like covering tuition or paying a security deposit.
Coinbase seeded the program with $2.6 million—funds that were originally earmarked for a direct-giving initiative the company later abandoned. Darin Carter, who heads U.S. policy and advocacy for Coinbase, said the pilot is about more than just payouts: “financial support and crypto education for young New Yorkers” are both on the agenda.
Sending aid through USDC instead of prepaid cards or wire transfers is cheaper and faster, GiveDirectly says, often costing just pennies per transaction. But the approach isn’t risk-free. Stablecoins have shown they can wobble during market stress, and critics worry young recipients could be tempted to speculate rather than use the funds for essentials.
Program participants will also have the option to earn 4.1% interest by holding their funds in Coinbase wallets, or to swap USDC for other digital assets—raising further questions about whether the safety net could double as a gamble.
Researchers plan to survey the 160 participants to see whether crypto distribution made their lives easier—or more complicated. Early responses, at least from some recipients, suggest relief.
“It will give me a lot of emotional, psychological tranquility,” said 25-year-old Luis Acero, one of the beneficiaries.
The results of Future First could ripple far beyond New York. If successful, it may bolster arguments for using blockchain-based aid programs on a wider scale. If not, it could become another cautionary tale about crypto’s promises colliding with real-world needs.
Source: Coindesk