With the support and licensing from the US Government, Circle is providing foreign aid through the USDC stablecoin to the people of Venezuela. Circle said,
“While this may be the first time, it will no doubt not be the last as global stablecoins firmly arrive on the world stage as a foundational infrastructure in the future of the international monetary system.”
USDC is the fastest-growing stablecoin of 2020, growing 500% in the past 8 months, with a market cap of over $2.8 billion.
In an announcement on Friday, Circle said it has been “approached” to help the “legitimate elected government of Venezuela” to distribute the financial aid to front-line medical workers in the country who, besides coronavirus, are also battling with hyperinflation, international sanctions, and economic collapse under the Nicolas Maduro regime who had launched his own oil-backed crypto petro.
After imposing sanctions on the Maduro regime, the US government seized Maduro and his government’s assets, which they now seek to get in the hands of the Venezuelans fighting COVID-19, for which they have turned to blockchain and fintech.
In collaboration with the Bolivarian Republic of Venezuela, led by President-elect Juan Guaido and U.S.-based fintech innovator Airtm, aid will be distributed by leveraging dollar-backed USDC.
The Guaidó government will basically use the seized funds to mint USDC, which will be then sent to Airtm, a blockchain-based bank and dollar-denominated payment platform that powers digital payments throughout North, Central, and South America.
The USDC will then be sent to Venezuelan healthcare workers’ accounts as AirUSD — Airtm’s stablecoin-backed dollar token.
“All of this is powerful, inspiring, and underscores the ability of the internet and digital currency to transform… how value and money moves,” said Circle adding that
“it marks a historic moment where in order to execute on US government foreign policy objectives, economic and political leaders have turned to stablecoins.”