Circle has joined with real-time payment systems in Brazil and Mexico. This lets businesses get USDC directly through local bank transfers. This aims to lower transaction time and costs for accessing digital dollars in these Latin American markets.
The company shared news of this development in a recent blog post. Circle now supports PIX in Brazil and SPEI in Mexico. This allows users to access USDC quickly using local currencies.
This new feature removes the need for international wire transfers. It can cut transaction times from days to minutes. Businesses can now convert Brazilian Reais (BRL) and Mexican Pesos (MXN) directly to USDC. This avoids the extra step of converting to USD first. The rates are also competitive.
The change is very important due to the large trade in dollars in these countries. Mexico’s yearly trade with the U.S. is over $800 billion. Also, 95% of Brazil’s $640 billion foreign trade is in dollars. Remittances from the U.S. to Mexico reached $63 billion in 2023. This is up to 4% of Mexico’s GDP.
Circle taps into growing crypto adoption in Latin America
Circle’s expansion aligns with the growing adoption of crypto in Latin America. Traditional financial institutions are increasingly interested in blockchain technology. Additionally, the company expects more integrations with local banks and payment systems globally. This is because awareness of blockchain benefits is growing.
This project builds on Circle’s decade-long mission. The goal is to use blockchain networks for easy value exchange. However, Circle is integrating with national payment systems in two G20 economies. This aims to make USDC more accessible and efficient for both businesses and retail customers in these markets.
The move may have major effects on cross-border payments and money transfers. It could offer a cheaper choice than usual methods. Stablecoins often cost less than regular money transfer services, which average 6.35% of the transfer amount. This integration may lead to big savings for users.
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