Wed, September 18, 2024 at 22:15

• 

  Kang-hoon

  • Hello Annie, today I have some interesting news about Circle, the issuer of the stablecoin USDC.

  • They are now supporting national bank transfers involving USDC in Mexico and Brazil.

  • 
• Annie

  • Oh, that sounds intriguing!😊 How exactly are they doing this?

  
• 

  Kang-hoon

  • Circle is offering local bank transfers via PIX in Brazil and SPEI in Mexico, which are the respective national real-time payment systems.

  • This eliminates the need for slow international wire transfers.

• Annie

  • Wow, that sounds like it could save a lot of time!

  • How much faster is it?

  
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• 

  Kang-hoon

  • Indeed, it can reduce the time it takes to access USDC from days to just minutes.

  • 

  • This is a significant improvement over the lengthy settlement processes of international wires.

• Annie

  • That's impressive!😲 Does this also mean it will be cheaper for businesses?

  
• 

  Kang-hoon

  • Yes, businesses can save on costs as Circle offers access to USDC directly from Brazilian Reais (BRL) and Mexican Pesos (MXN) at competitive rates.

  • This avoids the necessity of converting local fiat currency to USD before accessing USDC.

• Annie

  • So, businesses in Latin America can benefit a lot from this.

  • What kind of impact could this have on the region?

  
• 

  Kang-hoon

  • According to Circle, the addition of USDC to PIX and SPEI will help boost business and remittances in Latin America.

  • Faster and cheaper local availability makes USDC more attractive for businesses with operations in the region.

• Annie

  • That makes sense.

  • Especially since cross-border flows are heavily dollar-denominated.

  • Do you have any specific figures on this?

  
• 

  Kang-hoon

  • Yes, the US-to-Mexico corridor comprises the world's largest remittance flows, topping $63 billion in 2023, up 7% since 2022.

  • This accounts for up to 4% of Mexican GDP.

• Annie

  • Wow, that's a huge amount!💰 Are stablecoins generally more cost-effective for remittances?

  
• 

  Kang-hoon

  • Absolutely.

  • Stablecoins are typically much more cost-effective than traditional remittances, which cost an average of 6.35% of the face value.

• Annie

  • That's a significant difference.

  • Does Circle have any plans to expand this service to other countries?

  
• 

  Kang-hoon

  • In the long run, Circle plans to integrate USDC with other national banking systems, although they haven't named any specific nations yet.

• Annie

  • I see.

  • This sounds like a big step forward for digital currencies in Latin America.

  • Would you say this news is a positive development for the market?

  
• 

  Kang-hoon

  • Yes, I would say it's a positive development.

  • The faster and cheaper access to USDC can greatly benefit businesses and individuals in the region, making it a favorable move for the market overall.

• Annie

  • Thank you, Kang-hoon.

  • This was very insightful!😊

  
• 

  Kang-hoon

  • You're welcome, Annie.

  • I'm glad I could help explain the news.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.