Coinbase is partnering with non-profit Givedirectly to launch a program that offers crypto scholarships to low-income New Yorkers ages 18 to 30.
The project will distribute USDC worth $12,000 in six installments to the 160 residents selected by the lottery.
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Relieve poverty in New York using USDC
Givedirectly is a US-based nonprofit that allows donors to send directly to the world’s poorest households, and has partnered with central exchange Coinbase to launch a new pilot program.
The initiative, called “Future First,” aims to alleviate poverty in New York City by paying low-income residents. Givedirectly manages the program, and Coinbase funds it and provides the necessary infrastructure.
Givedirectly will pay 160 New Yorkers randomly selected USDC worth $12,000 for the next five months. The pilot will first place the participants $8,000 before $8,000, and the five deposits that follow will be $800.
“We wanted to send funds to a US-based nonprofit organization with a mission-aligned mission. Our goal is to increase the economic freedoms of the world and bring the power of blockchain technology to those who need it most,” a Coinbase spokesman told Beincrypto.
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The program is the latest to study how poorly suited string support can improve the quality of life of people with low socioeconomic status. It is also the first in the US to provide money with cryptocurrency.
In particular, Coinbase told Beincrypto that its involvement will be limited to enabling the transfer of these funds on behalf of Givedirectly.
Exchanges do not involve participants’ choices.
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Learn to use digital currency
The program inevitably educates participants on how to process cryptocurrency transactions. Stablecoins spending is more complicated than cash or debit cards, so you need to develop important skills to successfully use your funds.
Still, they have options. Participants can transfer money from their Coinbase wallets to their traditional bank accounts. You can also use your Coinbase debit card to purchase from the store or earn cash from the ATM.
However, the most direct and easiest option is to keep your funds within your Coinbase account.
This initiative means a new push from Coinbase, which uses crypto donations to improve the vision of a broader digital financial system.
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Past efforts at Crypto Giving
The pilot program is not the first time Coinbase has donated crypto to promote wider adoption of digital currency.
In 2018, Coinbase CEO Brian Armstrong announced the launch of Givecrypto, an organization aimed at empowering people financially by distributing cryptocurrencies globally.
Organizations first raise funds from cryptocurrency owners, then use these funds to distribute small payments from around the world to those in need.
However, by 2023, Coinbase has abandoned this effort, citing that the project cannot bring about lasting change. According to a Bloomberg report, Coinbase gave Givedirectly the remaining $2.6 million in funding, which was used to seed the New York City pilot program.
