By Michael Scott
Circle’s head of global policy, Dante Disparte, lauded Chile as the initial flag within the firm’s vibrant technological ecosystem. The chief strategy officer executive confirmed that the stablecoin issuer teamed up with the Latin American fintech giant Mercado Pago to scale USDC in Chile.
The firm’s statement published in Circle’s blog on Tuesday, August 29, indicated that partnering with Mercado Pago would address the rising demand for trusted digital dollars to facilitate transactions within Chile. Its expansion into Chile enables millions to access the USDC.
Circle Partnering With Mercado Pago Boosting USDC Accessibility in Latin America
The Tuesday statement portrayed partnering with Mercado Pago will bolster the accessibility and efficiency sought by users in Latin America. The partnership aligns with Circle’s vision to leverage innovative tech and empower individuals by onboarding them to the global financial ecosystem.
Disparate considers the launch of USDC in Chile as an initiation to the region profiled as one to assert its essence to advancing global outreach of digital assets. The unveiling of USDC in Chile aligns with the previous pronouncement by Circle’s chief executive, Jeremy Allaire, that over 70% of USDC adoption is outside the US.
Product vice president at the Circle, Rachel Mayer, profiled Latin America as the epicenter for a future digital economy flagged by flourishing innovation and widespread enthusiasm for digital dollars. The executive considers partnering with Mercado Pago to avail USDC to Chile users, orient the country towards accessing digital financial solutions, and enable global participation.
Mercado Pago to Expedite Cicle’s Objective to Expand USDC Adoption
The alliance allows the Mercado Pago mobile application to enable users to buy and sell USDC from a minimum of 50 Chilean pesos (CLP), translating to $0.05. The partnership with Mercado Pago onboards Circle’s USDC to userbase, estimated at 64 million as featured in the 2022 in-house publication Impact Report.
Mercado Pago involves the financial business of the Mercado Libre e-commerce giant. The latter is labeled Latin America’s Amazon, with its 2022 revenue averaging $10 billion. The partnership is poised to take off as several domestic exchanges have established support systems for the USDC. Partnering with Mercado Pago will scale USDC usage in Chile, aligning with Circle’s objective to scale the stablecoin adoption.
Budapuntocom chief executive Guillermo Torrealba lauds Circle-Mercado Pago partnership to scale USDC usage. The co-founder of the leading crypto exchange in Chile considered Mercado Pago as futuristic, whose adoption of USDC affirms crypto is here to stay.
USDC Targets Chileans Leaning Toward Embracing Dollar-denominated Stablecoins
Torrealba observes that Budapuntocom will leverage the partnership as the pioneer in supporting USDC in Chile. While Chile serves as the commercial testnet for products pursuing expansion in Latin America, unveiling USDC via the Mercado Pago portrays Circle’s trust in the country’s macroeconomic landscape.
Although Chile is a country commercially known as a testnet before expanding in the region, launching USDC through MercadoPago also reflects the current macroeconomic landscape.
Unveiling USDC in Chile is set to cement Circle’s foothold, particularly given the stability demonstrated by the nation. The country has low inflation levels averaging 2-3% in the past decade. The timing is suitable given that the country’s inflation dropped to 6.5% since July from the double digits in the consumer price index hit in 2022.
The lead organizer of the upcoming ETH Chile and Blockchain Summit, Latam Cristóbal Pereira, indicated that Circle’s supporting Mercado Pago to launch USDC is crucial to boosting the Chilean market. Pereira, who serves as the Colledge’s chief executive, considers Mercado Pago adding USDC timely since Chileans were leaning toward embracing dollar-denominated stablecoins.
Mercado Pago Poised to Ease Access to Digital Dollar in Chile
The pronouncement issued by Pereira, involved in organizing the leading regional Web3 meetups, indicated that accessing dollars has been difficult. However, he believes that teaming up with Mercado Pago will ease access to the digital dollar, considering its expansive fintech network and scaled growth in Chile.
Disparte considers Circle identifying Mercado Pago as its partner in Chile, which will leverage the existing infrastructure and user base to enable the crypto economy to ditch the fringe financing tag. The executive considers the partnership will help overcome the vulnerability to internet funny money.
Torrealba downplayed the plunge suffered by USDC to test a two-year low for its market capitalization. He indicated that the bear market facilitates filtering individuals seeking USDC for price from those seeking Circle’s technology. Circle teaming with Mercado Pago is beyond the circumstantial marriage.
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