Circle, a cryptocurrency startup and the issuer of the USDC stablecoin, has been granted authority by the United States government to use the USDC stablecoin in the Bolivarian Republic of Venezuela. Circle has launched this initiative with support from the US government in a bid to provide help to the residents of Venezuela with the use of the USDC stablecoin.
Circle partners with Airtm and US government
According to an official press release of Circle issued on November 20, the crypto startup has made partnerships with the digital currency exchange Airtm, the exiled government of Venezuela, and the United States government for providing aid to Venezuelans through USDC.
While announcing this news through the social media platform Twitter, the Chief Executive Officer (CEO) and Co-Founder of Circle Jeremy Allaire said:
“Breakthrough use-case for USDC – with US Govt permission, we partnered with the exiled govt of Venezuela and Airtm to distribute aid to people and healthcare workers in Venezuela. Stablecoins now a tool of US foreign policy.”
Breakthrough use-case for $USDC — with US Govt permission, we partnered with the exiled govt of Venezuela (@jgauido) and Airtm @theairtm to distribute aid to people and healthcare workers in Venezuela. Stablecoins now a tool of US foreign policy — https://t.co/50NoXNMJCz
— Jeremy Allaire (@jerallaire) November 20, 2020
Helping the country to combat Problems caused by hyperinflation
Circle will distribute USDC stablecoins among the medical workers of the Republic of Venezuela. The company believes that this move will provide much relief to Venezuela helping the country in combating problems caused by the hyperinflation crisis out there. As per the claim of Circle, it is the first time that a stablecoin is being used for delivering aid to a foreign country.
The company has said that it has developed an “aid disbursement pipeline” for this purpose. As the company stated:
“We were able to put in place an aid disbursement pipeline that leveraged the power of USDC – dollar-backed, open, internet-based digital currency payments – to bypass the controls imposed by Maduro over the domestic financial system and put millions of dollars of funds into the hands of people fighting for the health and safety of the people of Venezuela.”