New Yorkers Receive Crypto as Part of a Social Safety Net Pilot

Some New Yorkers are now receiving cryptocurrency as a form of financial support through a new pilot program funded by Coinbase. After shutting down its internal philanthropy arm two years ago, the exchange donated to the nonprofit GiveDirectly, which is now running a cash transfer initiative in New York City. The program distributes a total of $12,000 in crypto to 160 residents over five months.

How the Crypto Payments Work

Participants began receiving $800 monthly in USDC in September and were given an additional $8,000 lump sum in November. The initiative will conclude in February. USDC, a stablecoin pegged to the US dollar, is intended to offer participants the benefits of digital payments without volatility.

A New Twist on Guaranteed Basic Income

The pilot reflects the growing interest in guaranteed basic income experiments, which provide recurring, no-strings-attached payments to targeted groups. Unlike universal basic income, these programs typically focus on residents near the poverty line. GiveDirectly’s New York pilot introduces a twist by combining recurring payments with a significant lump sum—an approach backed by research showing that larger one-time transfers can help people make long-term investments, cover major expenses, or access education and training.

Why the Program Includes a Lump Sum

Program lead Emma Kelsey explained that participants often prefer having access to a larger amount upfront, noting evidence from GiveDirectly’s international programs and its “In Her Hands” initiative in Georgia. Lump sums, she said, can make a meaningful difference by enabling bigger financial decisions that aren’t possible with small monthly installments alone.

Testing Crypto as a Payment Format

GiveDirectly’s decision to distribute funds in crypto marks a departure from most basic-income-style pilots. Kelsey said the organization wants to understand whether recipients will use or perceive crypto differently from traditional cash payments. The process so far has been similar to previous distribution methods, but the team is tracking how participants respond to the digital format.

Why New York City Was Chosen

Kelsey noted that the program focuses on residents in the South Bronx and East Harlem because these areas have high levels of poverty and strong political support for crypto accessibility. Local enthusiasm for digital assets made the city a natural testbed for the pilot. She added that many residents in these neighborhoods may feel more comfortable using crypto than traditional banking systems, making the experiment both practical and relevant.