New York Launches First Crypto-Based Basic Income, Giving Young Adults $12,000 in USDC

Market Context

Universal Basic Income (UBI) experiments have been tested worldwide, but this marks the first U.S. initiative to use crypto instead of cash. With blockchain enabling low-cost, fast transfers, the program explores whether stablecoins can make aid distribution more efficient while also exposing participants to crypto use cases.

Technical Details with Attribution

• Participants were randomly selected and received their first payment directly in a Coinbase account. 
• Payout structure: one lump sum of $8,000, followed by five monthly installments of $800.
• The stablecoin USDC, issued by Circle, was chosen for stability, as it is backed 1:1 by U.S. dollar reserves.
• Transaction costs were extremely low: sending $800 cost GiveDirectly just $0.26.
• Coinbase allows conversion of USDC to dollars, but participants pay a 1.75% transaction fee.

Analyst Perspectives 

Supporters argue the program could make aid distribution cheaper and faster, while helping young adults access modern financial tools. Critics caution that crypto still faces usability limits, as USDC is not universally accepted, and participants may face friction converting to fiat. Some also worry that recipients could be tempted into speculative trading.

Global Impact Note

If successful, this pilot could serve as a model for future crypto-driven welfare programs worldwide. It highlights the potential of stablecoins in financial inclusion, but also underscores the need for user education, fair conversion options, and regulation to ensure accessibility.