Circle, a leading player in the financial services sector, has recently unveiled a strategic alliance with Mercado Pago, the digital payment arm of Mercado Libre, aimed at facilitating access to the USDC stablecoin for Chilean clientele. This initiative is set to empower millions of Chilean users to gain access to USDC via the platform provided by Mercado Pago, utilizing it as a digital surrogate for the U.S. dollar for both transactional and savings needs.

Circle Makes Foray into Chile and Latin America Through Mercado Pago

Circle, responsible for the creation and management of the USDC stablecoin—a major stablecoin with a significant market capitalization—has entered into an agreement with Mercado Pago to extend the reach of USDC to consumers in Chile. As per an official announcement, this partnership paves the way for over 2 million users of Mercado Pago in Chile to acquire and employ USDC for various financial activities, including payments and asset preservation.

Matías Spagui, the Senior Director at Mercado Pago, elaborated on the significance of this collaboration for Chilean consumers, highlighting that the “U.S. dollar serves as one of the globe’s most stable monetary units and provides a straightforward mechanism for safeguarding wealth amidst prevailing uncertainties.” Spagui added:

By introducing this stablecoin, our aim is to broaden the scope of cryptocurrency access and present the excess of two million users of Mercado Pago with a dollar-pegged alternative.

Latin America and the Inclination Toward Digital Dollars

Jeremy Allaire, Circle’s co-founder and Chief Executive Officer, opines that Latin America will significantly contribute to the global uptake of digital dollars. He emphasized this point further in a comprehensive report titled “Latin America’s Affinity for Digital Finance and the Emerging Internet Epoch,” wherein Circle posits that the readiness of the region to adopt these novel technologies is also driven by a fundamental need—many communities in Latin America have limited access to traditional financial services.

Rachel Mayer, Circle’s Vice President of Product, and a co-author of the aforementioned report, expressed the view that Latin America is rapidly becoming a pivotal hub for stablecoin adoption, stating, “Latin America is metamorphosing into a nexus for digital economic activities, marked by burgeoning innovation and a robust appetite for digital dollars.”

Jeremy Allaire indicated that there are plans in the pipeline to expand this collaborative venture to additional markets. He noted that Mercado Pago plans to “initiate USDC support in strategically important markets, commencing with Chile.” Allaire had previously stated that a substantial majority—exceeding 70%—of USDC usage originates from regions outside of the United States, with a considerable portion being fueled by emerging markets.

We invite you to share your perspectives on the alliance between Circle and Mercado Pago, aimed at availing USDC to Chilean consumers. Kindly express your views in the comments section below.

Frequently Asked Questions (FAQs) about Circle-Mercado Pago Partnership

What companies are involved in this new partnership?

The companies involved in this new partnership are Circle, a financial services company responsible for the issuance of the USDC stablecoin, and Mercado Pago, the digital payments wallet of Mercado Libre.

What is the primary objective of the Circle-Mercado Pago partnership?

The primary objective of this collaboration is to introduce the USDC stablecoin to Chilean customers. The initiative aims to provide millions of users in Chile with a digital representation of the U.S. dollar for transactional and savings purposes.

How many Mercado Pago users in Chile will be affected by this partnership?

According to the official announcement, more than 2 million users of Mercado Pago in Chile will have the opportunity to access and utilize the USDC stablecoin for various financial activities.

What are the comments from Matías Spagui, Senior Director of Mercado Pago, regarding this collaboration?

Matías Spagui highlighted the U.S. dollar’s status as one of the world’s most stable currencies and emphasized that the introduction of the USDC stablecoin aims to provide over two million Mercado Pago users with a straightforward mechanism for safeguarding wealth amidst prevailing uncertainties.

What does Jeremy Allaire, co-founder and CEO of Circle, think about Latin America’s role in digital dollar adoption?

Jeremy Allaire believes that Latin America will play a significant role in the global adoption of digital dollars. He further emphasized this point in a report where he stated that the readiness of Latin America to embrace these technologies is partially driven by a fundamental need, as many communities lack access to traditional financial services.

Are there any plans to expand this initiative beyond Chile?

Yes, Jeremy Allaire indicated that there are plans to expand this collaborative venture into additional strategic markets. Mercado Pago plans to initiate USDC support in other key markets, starting with Chile.

What percentage of USDC adoption is from outside the United States?

Jeremy Allaire has previously stated that more than 70% of USDC usage originates from regions outside of the United States, with a considerable portion being fueled by emerging markets.

Who is the author of the report titled “Latin America’s Affinity for Digital Finance and the Emerging Internet Epoch”?

The report is co-authored by Jeremy Allaire, co-founder and CEO of Circle, and Rachel Mayer, Circle’s Vice President of Product. The report discusses the rapid adoption of stablecoins and digital financial technologies in Latin America.

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7 comments

Samuel September 1, 2023 - 6:48 pm

Over 70% of USDC’s adoption is outside the US? thats eye-opening, shows the global demand for stablecoins.

Reply
Jenny_R September 1, 2023 - 9:56 pm

im surprised Mercado Pago is taking this leap with Circle. But its good news for the region, financial inclusion is key.

Reply
TechSavvy September 1, 2023 - 10:17 pm

Latin America is a melting pot for digital innovations, not just for crypto but also for fintech. This partnership just solidifies that fact.

Reply
CryptoGuy22 September 2, 2023 - 12:55 am

Two million users getting access to USDC? That’s not small potatoes. This could really spur crypto adoption in Latam.

Reply
Mike_Smith September 2, 2023 - 2:34 am

Wow, this is huge for Chile! Circle stepping into Latin America through Mercado Pago is gonna be a game-changer for digital finance there.

Reply
FinanceWatcher101 September 2, 2023 - 6:24 am

Circle partnering with Mercado Pago? This might just be the start. Can’t wait to see how this impacts digital payments and stablecoins in other markets too.

Reply
EvaMart September 2, 2023 - 10:31 am

Matias Spagui got it right, the USD is still king when it comes to stability. Adding a digital dollar to the mix makes sense.

Reply

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