Circle Expands USDC Access in Brazil and Mexico Through Local Payment Systems
- Circle integrates PIX in Brazil and SPEI in Mexico, enabling faster USDC access via local bank transfers.
- This eliminates the need for currency conversion, offering businesses quicker and cheaper USDC transactions.
- Companies in Brazil and Mexico can now bypass slow international wire transfers, benefiting cross-border trade.
Circle has significantly enhanced access to USDC by providing integrations with local bank transfers through PIX and SPEI, the real-time payment systems in Brazil and Mexico. This is a huge revolution for companies in both countries; they will no longer depend on slow and expensive international wire transfers.
By bypassing the need to convert their respective local currencies the Brazilian Real (BRL) and Mexican Peso (MXN)-to USD before purchasing USDC, Circle offers its customers faster and more effective means of access to its stablecoin. In the statement, Circle said it undertakes the responsibility of reducing friction in the global financial system through the use of blockchain technology.
This means that businesses can now bypass traditional, usually slower and more expensive methods of payment, because access to digital dollars is now possible directly through local banks. This shift is important, particularly for corporations operating in Latin America, since cross-border dollar-based transactions are a big chunk of the business deals going on in the region.
Circle Integrates PIX and SPEI for Faster USDC Transactions
The announcements of PIX and SPEI integrations for USDC came when demand for faster, cheaper, and more transparent solutions has been increasing within some of the regions largest economies, including Brazil and Mexico.
Where national real-time settlement systems are integrated, businesses can receive USDC in minutes, while international wire transfers may take a few days to settle. This is quite an advantage to companies whose operations depend wholly on cross-border trade and remittances.
Both Brazil and Mexico have long-standing financial relationships with the US, including billions in trade per year in goods and services. Regarding Mexico, for instance, money transfers from the US became significant in its economy, peaking at over $63 billion last year, making up about 4% of the countrys product. Transacting money via USDC could further drive down the cost of traditionally expensive remittances and further facilitate an easier way to send money internationally.
Circles move also coincides with the wider trend of traditional financial institutions dipping their toes into blockchain technology. The addition of USDC into national payment systems like PIX and SPEI illustrates how digital currencies are merged with traditional banking networks.
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Text source: TronWeekly
