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Circle connects USDC with payment systems in Brazil and Mexico

Circle connects USDC with payment systems in Brazil and Mexico

GrafaGrafa2024/09/18 05:45
By:Mahathir Bayena

Circle has integrated its USD-pegged stablecoin, USD Coin (CRYPTO:USDC), with the national payment systems of Brazil and Mexico, enabling businesses in both countries to directly access USDC through their local financial institutions.

This move eliminates the need for international wire transfers, making cross-border transactions more efficient for corporate purposes and retail customers.

The integration allows USDC to be accessed in local currencies, such as the Brazilian Real (BRL) and the Mexican Peso (MXN).

In Brazil, USDC is now integrated with PIX, the country's instant payment system launched by the central bank in 2020.

PIX facilitates real-time transactions 24/7 using just a phone number and had over 168 million users as of August 2024.

In Mexico, USDC is compatible with SPEI, the country's interbank system that allows real-time transfers via mobile apps and online banking, processing nearly 3.3 million transactions in 2023.

This integration is part of Circle's broader strategy to improve cross-border payments, a key use case for stablecoins.

Stablecoins like USDC can streamline remittances, making them faster and more cost-effective.

Circle highlighted that remittances from the United States to Mexico reached $63 billion in 2023, a 7% increase from 2022, representing up to 4% of Mexico's GDP.

Brazil and Mexico are crucial markets for Circle's expansion into Latin America, given their substantial trade relationships with the United States.

Mexico trades more than $800 billion in goods and services annually with the U.S., while about 95% of Brazil's $640 billion annual foreign trade is conducted in U.S. dollars, including $120 billion in direct trade with the U.S.

At the time of reporting, the USD Coin (USDC) price was $0.9999.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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