Circle Expands in Latin America: USDC Now Available in Brazil and Mexico

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Veronika Rinecker is based in Germany, studied international journalism and media management. She specializes in politics and regulation, energy, blockchain, and fintech. Since 2017, she has been...

Circle, a stablecoin issuer, has expanded its reach in Latin America by offering USD Coin (USDC) in Mexico and Brazil.

Circle partnered with Brazil’s PIX and Mexico’s SPEI, real-time payment systems, to enable local bank transfers, as per company announcement from Sept. 17. By eliminating the need for international wires, businesses can now access USDC in just minutes instead of days, freeing up capital that would otherwise be tied up in lengthy settlement processes.

#USDC is now available in Brazil and Mexico via local bank transfers and the local real-time payment systems in Brazil and Mexico – PIX and SPEI respectively.

Read more about the new possibilities USDC unlocks for businesses in the region.https://t.co/KSzxLwA1Vo

— Circle (@circle) September 17, 2024

Latin America, a region experiencing rapid growth in e-commerce with retail sales expected to reach around $138 billion by 2024, has long grappled with the challenges of cross-border payments. The U.S. dollar (USD) and the euro dominate in the region’s cross-border payments, accounting for 47.51% and 31.57% of transactions, respectively.

Mexico and Brazil are major trading partners of the United States. Mexico’s annual trade with the U.S. exceeds $800 billion, while 95% of Brazil’s $640 billion in annual foreign trade is conducted in dollars. Direct trade between the U.S. and Brazil reaches approximately $120 billion per year.

While trading with stable fiat currencies like USD offers stability, it can also lead to higher transaction costs and currency risks. Stablecoins are