Circle, the company behind USDC, has announced a partnership with leading banks to support local bank transfers in Brazil and Mexico. This allows companies to obtain USDC directly from their national currency, making business processes simpler and quicker.
Circle's Partnership with Local Banks
Circle has partnered with leading banks to support local bank transfers in Brazil and Mexico. By utilizing the PIX and SPEI systems, companies can obtain USDC directly from their national currencies, whether Brazilian Reais (BRL) or Mexican Pesos (MXN). This reduces costs and speeds up business processes, allowing companies to use USDC for supplier payments or offering it to customers as a payment option.
Significance for Cross-Border Payments
According to Circle, using USDC in Brazil and Mexico is not only faster but also cheaper. Instead of using traditional international wires that take a long time, companies can now obtain USDC almost instantly. This eases access to funds that would otherwise be stuck waiting for long bank transfers. This innovation is particularly beneficial for businesses conducting transactions in dollars in Latin America, where many cross-border operations take place.
Impact on Remittances
For remittances, this innovation holds even more significance. In 2023, $63 billion was sent from the US to Mexico to support families. Traditional means of sending money can be expensive, but using USDC makes it much more affordable. This benefits both businesses and individuals relying on these payments.
Circle's partnership with local banks in Brazil and Mexico makes USDC usage fast and convenient. This is a significant step for improving business processes and remittances in Latin America.
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