Circle, the issuer of the stablecoin USDC, Nubank, Brazil’s leading digital bank, have teamed up to bring USDC to local customers. This announcement marked a sustainable development that could help to accelerate the adoption of digital currency in Latin America.
As part of the partnership, USDC will be integrated into Nubank Cripto, a solution that allows users to buy, sell, and hold various cryptocurrencies. Nubank’s over 54 million customers can now access and use USDC, in addition to the existing supported cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
A Global Expansion
Digital currency has gained popularity as an alternative investment in Brazil. The partnership will allow Circle to expand its reach into one of the fastest-growing markets for digital currency in Latin America. Circle and Nubank will use their expertise in security to ensure that USDC is safe and secure for users in Brazil.
Moreover, the two entities will work together to educate Brazilians about USDC and the benefits of digital currency.
Jeremy Allaire, CEO and co-founder of Circle, says it’s crucial to connect with dollars in Latin America, especially in Brazil where digital currencies are becoming more popular. He believes that teaming up with Nubank will help spread the reach of USDC globally and create a new way of handling internet finances.
Thomaz Fortes, General Manager of Nubank Cripto, explains that USDC integration offers more options for clients, in addition to the features provided by Circle. The two companies are also exploring ways to include Nubank Cripto in their application’s range of financial solutions for users.
USDC was created to address the volatility issue of many other cryptocurrencies. Pegged to the US dollar, USDC provides a stable and reliable store of value. The stablecoin is among the most popular choices for investors, traders, and businesses who use cryptocurrency for payments and other transactions.
Stablecoin Adoption Skyrockets in Brazil
According to a report in October, stablecoin Tether (USDT) accounts for 80% of crypto transactions in Brazil. Tether is the largest stablecoin by market capitalization. Its market cap surpassed $89 billion as of December 2021.
It was estimated that the total value of USDT transactions in Brazil crossed nearly $55 billion USD as of mid-October this year. This figure is almost twice the volume of Bitcoin transactions, which amounted to $30 billion USD.
The use of USDT in Brazil has been steadily increasing since 2021. Interestingly, in July 2022, USDT transactions surpassed the volume of Bitcoin transactions in the country for the first time.
This shift occurred during a challenging period for the cryptocurrency industry when notable entities like Three Arrows Capital and Voyager Capital reportedly were in a financial crisis.
This trend suggests a growing adoption of stablecoins for secure and stable digital transactions within the Brazilian crypto community. Not only in Brazil, Latin America is becoming a key player in the global adoption and innovation of digital currencies.
In Latin America, economic instability and high inflation have fueled a growing interest in cryptocurrencies as a reliable store of value. Countries like Venezuela and Argentina, grappling with hyperinflation, witness cryptocurrencies, particularly Bitcoin, as a stable alternative for wealth storage and transfer.
Cryptocurrencies also provide a means to bypass strict capital controls, enabling individuals and businesses to move funds across borders independently of traditional financial institutions.
The regulatory landscape across Latin America varies, with some countries embracing cryptocurrencies, like El Salvador, while others, such as Colombia and Brazil, implement stricter regulations.
Alternatively, blockchain innovation is thriving in the region, with projects extending beyond finance into supply chain management, identity verification, voting systems, and social impact initiatives.
Cryptocurrencies are increasingly chosen for cost-effective cross-border remittances, offering faster transactions and lower fees than traditional methods.
