This means companies can access USDC directly from local banks, making it easier and faster to use digital dollars for business.
No need to send money overseas and wait for it to clear – now it can happen in just minutes instead of days.
USDC Now Available for Local Payments
Circle, the company behind USDC, has teamed up with leading banks to support local bank transfers. They will use Brazil’s PIX and Mexico’s SPEI systems. In a nutshell, companies can now get USDC right from their own country’s currency. Whether they’re using Brazilian Reais (BRL) or Mexican Pesos (MXN), businesses don’t have to go through the hassle of converting to US dollars first.
That’s like cutting out the middleman and saving money. This move also speeds things up, making business operations more efficient and smooth as silk. Businesses can use USDC for their purposes, like paying suppliers or offering it to customers as a payment option. This is a huge deal for companies that work with US dollars but operate in Latin America, where a lot of cross-border trading happens in dollars. For example, Mexico and the United States do over $800 billion in trade each year, and most of Brazil’s foreign trade is also done in dollars.
CIRCLE NEWS: Today, we announced the availability of banking and USDC minting/redemption native in Brazil and Mexico, with 24/7 rails (PIX & SPEI) and using local currencies. This is part of our continued global banking infra expansion for USDC.https://t.co/18wq9Bq2R5
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) September 17, 2024
Why It’s a Big Deal for Cross-Border Payments
According to Circle, using USDC in Brazil and Mexico isn’t just faster – it’s also cheaper. Instead of using old-school international wires that take forever, businesses can now get their hands on USDC almost instantly. This makes it easier to free up cash that would normally be stuck waiting for those long bank transfers. It’s like cutting through the red tape, letting businesses access their money when they need it most.
For remittances, the impact is even bigger. A whopping $63 billion was sent from the US to Mexico in 2023, with people sending money home to support their families. Sending money the traditional way can cost a lot, but with USDC, it’s much more affordable. That’s a win-win for both the businesses and the people relying on these payments.
Disclaimer
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