Circle has announced its collaboration with Mercado Pago, a prominent payments giant in Latin America, to introduce the USDC stablecoin to customers in Chile. This strategic partnership comes at a time when the South American nation is grappling with ongoing economic challenges and elevated inflation rates.
Matías Spagui, Senior Director at Mercado Pago, highlighted the importance of the US dollar’s stability in times of uncertainty. He stated in a blog post that the US dollar serves as a reliable means to preserve wealth amidst the prevailing economic turmoil.
Circle envisions providing over 2 million users with an alternative
Spagui emphasized that by launching the USDC stablecoin, Mercado Pago aims to provide its extensive user base of over two million customers with an alternative that mirrors the value of the US dollar.
This initiative will enable them to harness the advantages of a secure, transparent, and trustworthy digital asset tied to the US dollar. The stability of USDC is expected to facilitate near-instant transactions, offering users a seamless experience in the realm of digital payments.
Circle CEO Jeremy Allaire recently shared insights into the company’s strategic moves. He revealed that Circle is leveraging its substantial $1 billion cash reserves to navigate the evolving market landscape. This proactive approach underscores the company’s adaptability and resilience in the face of market shifts.
Data sourced from The Block also provides valuable insights into Circle’s USDC stablecoin supply. The statistics indicate a noticeable decline in USDC’s supply since the beginning of 2023. Starting with a market cap of $42 billion in January, USDC’s market capitalization has since decreased to its current value of $25.9 billion.