Circle joins forces with Mercado Pago to bring USDC to Chile

Circle said Tuesday that it's joining forces with Latin American payments giant Mercado Pago to introduce the USDC stablecoin to customers in Chile. The announcement comes amid ongoing economic uncertainty in the South American country and elevated inflation. 

"The US dollar is one of the most stable currencies in the world and a simple vehicle to ensure wealth preservation amidst general uncertainty," Mercado Pago senior director Matías Spagui said in a blog post. 

"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," he continued. 

Circle said that the integration of USDC into the Mercado Pago platform will allow users in Chile to "leverage the benefits of a trusted, secure, and transparent dollar digital asset for near-instant transaction."

Stablecoin adoption 

Ark Invest earlier this week highlighted the growing adoption of crypto in neighboring Argentina, which is also struggling with red hot inflation. The economic backdrop has even set the stage for Javier Milei, a pro-bitcoin libertarian presidential candidate, to rise in political prominence.

Coinbase and Circle, which developed USDC, said earlier this month that they planned to expand the use of the stablecoin into other jurisdictions.

The crypto exchange announced at the time that it was increasing its support for stablecoins by "taking an equity stake" in Circle. As part of an agreement, Circle will take full control over USDC issuance and governance, and the stablecoin will be launching on six new blockchains.