USDT will soon be available at 24,000 ATMs in Brazil
The integration is being made possible by a partnership with Brazilian crypto services provider SmartPay, enabling the conversion of USDT to Brazilian reais. SmartPay is integrated with TecBan, a local company that operates 24,000 ATMs under the Bancos24Horas brand.
Once the service is fully implemented, users will be able to transfer USDT from any wallet to an ATM to conduct their transactions. At launch, users will only be able to deposit USDT and withdraw reais, but beginning in February, they will also be able to deposit reais at ATMs and receive USDT in their wallets.
A study conducted by the Instituto Locomotiva in January 2021 showed that Brazil still has a population of 34 million adults who do not have access to reliable banking services.
The integration of USDT into SmartPay's product is anticipated to "provide millions of people with the opportunity and access to the digital currency ecosystem and new financial revolution," the announcement from Tether said.
"The difficulties and limitations imposed by inflation and a less-than-inclusive financial system has excluded many of Brazil's citizens from being able to participate in the country's growing economy," said Tether Chief Technology Officer Paolo Ardoino. "Adding tether tokens to ATMs across Brazil provides the opportunity to include more people in the financial system. This will bring major changes not only to the payments industry but to the entire Brazilian financial ecosystem."
Recent data on the use of USDT in the region shows that more than $1.4 billion was moved using the stablecoin across 79,836 operations in August, with an average amount transferred of nearly $18,000 per transaction. That makes Tether one of the most used cryptos in the region.
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Through the SmartPay app, users are able to choose the best cryptocurrency for their transactions, and USDT will soon be an available option. They will also be able to send and receive tether tokens anywhere in the world and withdraw reais in Brazil.
According to Rocelo Lopes, Chief Executive Officer of SmartPay, "After we integrated tether tokens with the Brazilian Payment System called PiX, we integrated with TecBan, which is the largest ATM company provider in Brazil. Before, we used to say where you can pay with PiX, you can pay with tether tokens - now where you see Banco24Horas you can convert tether tokens into reais."
Tether previously launched its MXNT token, which is pegged to Mexico's peso as a "testing ground" in Latin America as part of its long-term goal of introducing more fiat-pegged tokens to the region.