Payment Platform Island Pay Launches USDC Wallet in Latin America

• 122 million people in Latin America were considered unbanked in 2021.
• Island Pay launched a digital wallet “CiNKO” and USDC is the main currency.
• CiNKO wallet is part of a plan to roll out stable coins and DeFi in Latin America.

Island Pay launched a digital wallet named CiNKO that will use USDC as the main currency across 30 countries in Latin America and the Caribbean. The wallet permits users to transfer money, make peer-to-peer payments, and transact with merchants.

In 2021, the percentage of remittances in Latin America and the Caribbean increased to up to 26.5% and 11.3% in 2022 reaching $145 billion.  Manuel Orozco, director of the Migration, Remittances, and Development Program said, “Sending money has a cost like anything else, and the percent cost relative to the amount ‘bought’ is often criticized without proper benchmarking.” In Latin America and the Caribbean, a cash remittance costs up to 6.2% while a digital remittance costs 5.09%.

Circle’s chief business officer Kash Razzaghi mentioned that technology could reduce the cost of remittances by 80%. It costs nothing to receive USDC when using CiNKO’s wallets, yet there is a gas fee depending on the blockchain. He also added, “The CiNKO wallet is part of the broader push to roll out stablecoins and decentralized finance protocols in Latin America.”

According to the World Bank, 122 million people in Latin America were considered unbanked in 2021. Island Pay CEO, Richard Douglas, said, “Our goal is to continuously look for ways to advance financial inclusion in the region and enhance financial experiences for both the unbanked and banked populations.” CiNKO wallet users don’t need a bank account to make any transactions.

Island Pay, the Bahamas-based company, launched a tourist wallet app in 2022, the first-ever digital one. The wallet is said to revolutionize the tourist experience and to increase tourism to the Bahamas. Tourists can purchase Sand Dollars, the Bahamas Central Bank Digital Currency, and use it to purchase goods and services. Island Pay expanded into Barbados with its digital wallet and first transaction kiosk.