Select New Yorkers to receive $12K worth of obscure asset with no strings attached. Supporters, critics clash over ‘basic income.’ Where do you stand?

Funded by cryptocurrency exchange Coinbase, the pilot offers participants an $8,000 lump-sum payment, along with five monthly payments of $800. The money comes with no spending requirements or restrictions.

Emma Kelsey, who leads U.S. programs at GiveDirectly, told Bloomberg that the structure is meant to give recipients flexibility to make meaningful upfront investments, such as in education or housing. “You could imagine a lump sum being used for a security deposit, for example,” she said.

Kelsey also noted that one goal of the pilot is to understand the practical benefits and drawbacks of distributing aid in crypto.

While the broader crypto market is known for volatility, the pilot uses USDC, which is designed to be far more stable. According to Coinbase: “USDC is structured to maintain a stable value of $1, backed by reserves of cash and short-term U.S. government securities. Market activity may occasionally cause small deviations in price, but transparency measures and reserve backing aim to ensure price stability (2).”

Still, not everyone is convinced. Hilary Allen, a professor of law at American University’s Washington College of Law, warned that crypto-based basic income may come with hidden complications.

“If this is being funded in crypto there are some strings attached,” Allen told Bloomberg. “Stablecoins are less volatile than Bitcoin, but I would say that giving money in this way is very much designed to make it easier to take that money to bet on Bitcoin, because it's going to be sitting as crypto in a crypto wallet with a crypto exchange.” She also argued that stablecoins may not always remain perfectly stable during major market shocks.

Kelsey clarified that “we are not encouraging individuals to invest in risky assets,” adding that the onboarding process included warnings about the downsides of investing in other cryptocurrencies.

The pilot has already sparked debate online. Some view basic income as increasingly necessary as artificial intelligence threatens jobs.

“AI will replace everyone this is why they’re doing this,” one X user wrote (3).

Others see the project as a milestone for “crypto utility finally scaling” and a glimpse of “how digital assets support financial inclusion (4).”

Still others raised classic concerns about universal basic income — even though this program isn’t UBI because it’s targeted, not universal — arguing it could fuel inflation. One X user put it bluntly: “UBI is only going to cause inflation to get worse which will force you to rely on the government for ‘free money.’ This is a deal with the devil (5).”

And many commenters simply wanted in on the money, asking how they could join — even though all 160 spots have already been filled.

It’s not hard to see why. The appeal of income without extra labor is easy to understand — especially in an economy where every dollar matters. The good news? While guaranteed basic income is still very much in the pilot phase, savvy investors have long found ways to build passive income. Here’s a look at three of them.

Earn rental income without being a landlord

Real estate has been one of the most popular ways to generate recurring income. When you own rental property and tenants pay rent, you earn a steady monthly cash flow.

It’s also a popular hedge against inflation, as property values and rental income tend to rise alongside the cost of living.

However, while real estate investing has clear benefits, being a landlord comes with challenges. Managing a property involves finding and screening tenants, collecting rent and handling maintenance and repair requests (out of your own pocket) — and that’s assuming you can save enough for a down payment and get a mortgage to buy the property in the first place.

The good news? These days, you don’t need to buy a property outright to reap the benefits of real estate investing. Crowdfunding platforms like Arrived offer an easier way to get exposure to this income-generating asset class.

Backed by world-class investors like Jeff Bezos, Arrived allows you to invest in shares of rental homes with as little as $100, all without the hassle of mowing lawns, fixing leaky faucets or handling difficult tenants.

The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase and then sit back as you start receiving any positive rental income distributions from your investment.

Collect dividends

Dividends are payments companies make to shareholders out of their profits, typically on a quarterly basis.

Investing in dividend-paying companies allows you to generate passive income without selling your shares — and it can be surprisingly satisfying. As John D. Rockefeller, one of the richest Americans in history, once said, “Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”

While stock prices can rise and fall, companies with a strong track record of paying — and growing — dividends offer investors a steady cash flow. Over time, those increases can compound into a powerful income stream.

If you’d rather not pick individual stocks, dividend-focused exchange-traded funds (ETFs) offer a simple alternative. These funds hold a basket of dividend-paying companies, providing instant diversification across industries. Many also offer automatic reinvestment, allowing investors to compound their returns over time without lifting a finger.

The beauty of ETF investing is its accessibility — anyone, regardless of wealth, can take advantage of it. Even small amounts can grow over time with tools like Acorns, a popular app that automatically invests your spare change.

Signing up for Acorns takes just minutes: Link your cards and Acorns will round up each purchase to the nearest dollar, investing the difference — your spare change — into a diversified portfolio. With Acorns, you can invest in a dividend ETF with as little as $5 — and, if you sign up today, Acorns will add a $20 bonus to help you begin your investment journey.

Let your cash hatch its own income

You don’t need a massive investment portfolio to build passive income. Even your spare cash can work harder for you — earning competitive yields instead of sitting idle.