Recently, two soccer teams transferred a South American player using USDC. However, it might face unexpected consequences.
Sports communities around the globe are always accustomed to the transfer and exchange of athletes or players. So, naturally, this happens from one sport to another.
Interestingly, when Brazil’s São Paulo acquired Guiliano Galoppo from Argentina’s Banfield, it did not cause specific news waves because of its players but rather the transaction method used.
The payment instrument or method used is USDC or USD Coin/token as the medium of exchange made through Bitso, a known Latin American Exchange.
Why use USDC?
A simple currency risk mitigation was the answer provided by Circle’s Chief Strategy Officer, Dante Disparte, as “the payment medium to avoid currency risks.”The Circle is among the many companies behind USDC.
In November, Bitso announced a partnership with Circle to launch an international transfer product.
Since then, Bitso has processed about USD 1 Billion in crypto remittance between the US and Mexico in the earlier half of this year. It is roughly around 400% better than the previous year.
While Sao Paolo may benefit from this in terms of hedging against currency volatility, the losing end would be on the Argentinian side, which has specific rules that orders them to convert the total amount of transaction into Argentine Peso.
It is an excellent example of cryptocurrency’s rapidly expanding use case as a medium to hedge foreign exchange volatility. In this case, Sau Paolo could enjoy lower than Swift charges on the transfer.
This case is interesting for the crypto community as it provides both the challenges and benefits of applying crypto trading to the athletic environment – specifically in transferring and paying players or athletes.