The partnership with SmartPay, a Brazilian payments company, will begin on November 3. Tether announced Thursday that it plans to make its USDT cryptocurrency–the world’s dominant stablecoin by market capitalization–available at over 24,000 ATMs across Brazil.
Paolo Ardoino (CTO of Tether) stated in a statement that “the difficulties and limitations imposed by inflation and a less inclusive financial system have prevented many Brazilian citizens from being in the country’s growing economic.” “Adding tether tokens at ATMs in Brazil gives us the chance to reach more people through the financial system,” he said.
ATM users in Brazil will soon have the ability to instantly convert Brazilian reals into USDT, and vice versa. They can also send USDT anywhere around the globe.
Ardoino stated that “This will bring about major changes not just to the Brazilian payments industry, but also to the entire Brazilian financial system.”
Tether partnered up with Brazilian payments company SmartPay to expand USDT’s reach in South America’s largest economy.
SmartPay helped integrate USDT and the Brazilian payment system PiX, as well as TecBan (the largest ATM provider in Brazil). The program will launch in November.
In recent years, cryptocurrencies have gained a lot of popularity in Latin American markets, especially stablecoins such as USDT. They are attractive to consumers for their convenience and utility as value stores that can often be less volatile than national currencies.
Stablecoins such as USDT are usually tied to the US dollar’s value and secured by real-world assets which are audited annually by American financial institutions. They are a financial product that offers both the security and autonomy of crypto assets, as well as the stability of fiat money.
USDT is currently the most traded cryptocurrency in the world according to coinGecko. It has a market cap of more than $68 billion.
It is a popular choice for crypto traders and consumers who want to quickly enter and exit trades without having to access cash.
Brazil’s economy has been suffering from high inflation for more than a year. September was the first month since June 2021 when inflation fell below 9%. Receita Federal, Brazil’s tax authority, reports that Brazilian reliance on stablecoins has more than tripled since June 2021.
Tether has been expanding its global dominance and has taken steps to improve the public’s perception of its transparency and steadiness. Tether last week announced that it had eliminated all commercial paper from the company’s reserves and would replace these investments with US Treasury Bills. This move was seen as an attempt to calm American regulators worried about the stability and viability of the company’s assets.