Circle Expands To Brazil & Mexico, Will It Boost USDC Adoption?

USDC has been extended to Brazil and Mexico, integrating with local payment systems to enable faster and more cost-effective cross-border transactions. Circle, the company behind USDC, has connected the stablecoin with Brazil’s PIX and Mexico’s SPEI payment systems, effectively removing the need for third-party wire transfers. This integration streamlines transactions and reduces costs, enhancing the efficiency of cross-border activities.

Local currencies in Brazil and Mexico also directly integrated with USDC, allowing businesses in these markets to save on conversion costs and transfer time. The growth of USDC enhanced inter-organizational trade and remittances in Latin America, significantly addressing the issues of cost and time for settlement.

Circle, the start involved in the launch of the stablecoin, USDC (USD Coin) has recently expanded to Brazil and Mexico. This is a significant step toward offering faster and cheaper DD services to business entities in two of the largest Latin America being Mexico and Brazil.

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Insight Into Circle’s Latest Expansion

Both countries have implemented two contemporary real-time payment systems: PIX in Brazil and SPEI in Mexico. With this move, one can obtain the USDC via the local bank. Therefore, it does away with the expensive and time-consuming business of international wire transfers.

Furthermore, due to the finding that local banks in Brazil and Mexico are now able to accept USDC from their customers for BRL or MXN without having to convert the currency to USD, businesses in the two nations can now easily obtain USDC from their existing financial partners. This new functionality provides several benefits: This new functionality provides several benefits:

First of all, it saves time which is needed to obtain USDC. Now it will take a few minutes and not days as it used to be in every one of the transfers.

Second, it helps businesses prevent the extra expenses of exchanging one currency to another.

Third, of the four, it promotes cross-border business conducted in the international market through the use of a digital dollar.

For those establishments conducting their operations in Latin America where many transactions take place with US dollars, this is a development of immense proportion. Mexico ranks as one of the leading trading partners of the United States, engaging in a trading partnership with them valued at more than 800 billion dollars for the year.

Similarly, Brazil also employs the dollar to a great extent for its international trade since the trade between the United States and Brazil is about $120 billion per year. Therefore, having the ability to clear through the USDC makes it and decreases the cost of all businesses.

Remittance Market

There is no doubt that the ability of USDC to expand as a means of payment in Mexico is most appropriate for the remittance market. More than $63 billion in remittances came to Mexico by 2023 from the US only which was equivalent to 3 % of its GDP. Mexico has sourced 9% of its GDP through the fisheries for the past few years up to 2012. 

You can use these new assets like Circle’s USDC to remit funds, and they are cheaper than the conventional ways of transferring cash in large amounts. By then it normally charges a total of 63. 5% in charges and as you can see this one is very low therefore it shows that our company has increased charges.

This move is consistent with Circle’s goal of connecting blockchain finance to the world economy as well as to the existing finance industry. Jeremy Allaire, the CEO at Circles, the company behind the acquisition described the move as the next big step in further growth. He said that more local banks and payment systems around the world will adopt blockchain technologies because the benefits of internet-based settlements will become apparent.

This comes after the stablecoin issuer unveiled plans to partner with Sony Block Solutions Labs to introduce bridged USDC to the Ethereum Layer 2 blockchain that Sony developed, known as Soneium.