In an exciting move that extends the reach of the USD Coin stablecoin, fintech powerhouse Circle has partnered with Mercado Libre, a dominant player often dubbed the “Amazon of LATAM with 200M users.” This collaboration was announced on August 29th. It’ll set the stage for the integration of USDC into Mercado Pago, the online payment platform under Mercado Libre’s umbrella.
A Strong Partnership
Circle’s CEO, Jeremy Allaire, took to X (formerly Twitter) to broadcast the momentous launch of USD Coin on Mercado Pago. By teaming up with Mercado Libre, Circle aims to provide 2 million users in Chile with access to USDC stablecoin.
USD Coin, a stalwart in the realm of stablecoins, boasts a direct peg to the U.S. dollar. This strategic move to introduce USDC to the Chilean market effectively bolsters the cryptocurrency’s utility. Additionally, it’ll bolster the influence of the U.S. dollar within the country.
Addressing Payment Practices in Chile
Chile stands out for its nuanced payment landscape. While the U.S. dollar is widely embraced in various Latin American countries, its acceptance as a payment method is less common in Chile. This peculiarity is often highlighted by travel and consumer awareness platforms.
According to Matias Spagui, the senior director of Mercado Pago,
“The US dollar is one of the most stable currencies in the world and a simple vehicle to ensure wealth preservation amidst general uncertainty. With the launch of this stablecoin, we seek to diversify access to cryptocurrencies and offer the more than two million Mercado Pago users an alternative that matches the value of the dollar.”
A Progressive Approach to Cryptocurrency
The journey towards cryptocurrency integration began when Mercado Libre expressed its intention to embrace cryptocurrencies as a mode of payment back in 2021. This visionary stance has led to notable strides, with the incorporation of USDC for users in Chile being the most recent manifestation of this commitment.
Furthermore, this year witnessed a collaboration between Mercado Libre and Paxos, leading to the introduction of the Pax Dollar (USDP) stablecoin for users in Mexico.
Circle’s Ongoing Momentum
Circle’s impact continues to reverberate across the industry. The announcement of Coinbase’s equity share in Circle upon the dissolution of the Centre governance body marked a pivotal moment. This strategic move further positions Circle to assume more responsibilities as USDC expands its presence across multiple blockchain platforms in the future.
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