Block’s latest subsidiary, TBD, is working towards making cryptocurrency generally accepted for payment and adopted into financial applications around the world. The firm plans to partner with Circle to support international acceptance of USDC for payment.
The New Partnership
According to TBD’s tweet on Thursday, Circle, a tech firm focused on peer-to-peer payments, and TBD has decided to jointly create open-source technologies to find means by which cryptocurrencies will be adopted into the payment system and financial applications across the globe.
The partners are ready to foster the acceptance of Circle’s UST Coins for payment across countries. They will also ensure holders of the stablecoin have total control over it. TBD further explains in their tweet that the partnership will provide solutions to top financial issues globally. It will also prevent the conflict between digital currencies and conventional payment methods.
Further, the firm’s chief operating officer, Emily Chiu, believes that Bitcoin has the potential to contest the US Dollar as the popularly used reserve currency. At the same time, the stablecoins will bridge the gas between them.
Meanwhile, TBD plans on creating a more accessible platform for developers who would love to build on Block’s tbDEX and Web3 by backing USD Coins in three use cases.
Firstly, by linking conventional payment and digital currencies for household and corporate use. Other use cases are making payment cheaper and quicker worldwide and ensuring wallets of stablecoins, backed by US Dollars, are self-custody.
Meanwhile, as the global fight against inflation continues, the continued hike in interest rates adversely affects most currencies globally. Most nations are now turning to stablecoins for international payment and stores of value.
Similarly, the Philippines, Mexico, and India are leading countries receiving trans-border remittances. However, TBD plans on starting its support for international remittances by focusing on the dealings between Mexico and the United States. Mexico reportedly receives about 95 percent of remittances sent from the USA.
USD Coin Versus USD Tether
Reports reveal that USDC is lagging compared to USD Tether (USDT), another top stablecoin. In terms of circulation within 30 days, USDC reduced by 5.3% while USDT increased by 0.4%.
Also, USDT’s market capitalization is $67,95B, while USDC dipped to $48.69B, according to CoinMarketCap. Many believe the USD Coin drop is due to the absence of censorship resistance.
The partnership will hopefully assist the stablecoin’s recovery by fostering its mainstream adoption. However, the continued rate hike by the central banks exposes the stablecoins to liquidity risks.