TBD, a Bitcoin-focused wing of Jack Dorsey’s payments company Block, has partnered with Circle to help expand the on-ramps and off-ramps between the worlds of crypto and fiat.
The teams intend to bolster some of the major real-world use cases for cryptocurrencies, from cross-border remittances to stablecoin self-custody.
Expanding Network 5
According to TBD adthe team will begin supporting Circle’s stablecoin, USDC, in a number of applications to facilitate the creation of the tbDEX protocol Web 5 platform.
The tbDEX protocol is an attempt to create a decentralized Bitcoin exchange, facilitating the bridge of value between the fiat and crypto worlds. Currently, moving between each requires the use of centralized exchanges, which collect identifying information from their users due to KYC requirements.
As a solution, TBD’s “network 5The project intends to decentralize data storage and return control of their identity to users, using the Bitcoin blockchain.
“An open approach solves decentralized identity and enables frictionless, scalable and secure payments to work for consumers and merchants using stablecoins.” stated TBD.
In addition to creating global crypto-to-fiat payment rails, TBD said the partnership would help foster “faster, lower-cost remittances globally,” starting from the US to Mexico.
Cryptocurrencies have proven effective and popular in the global South for use in remittance payments. a chaining report this month found that India and Pakistan, two countries with large remittance markets, were two of the top ten countries in terms of cryptocurrency adoption. A tongan parliamentarian – Lord Fusitu’a – has even pushed for Bitcoin to be legal tender in his country for its remittance benefits.
Fight against hyperinflation
Ultimately, the association intends to help people in hyperinflationary environments store their wealth using self-custodial stablecoins. This is particularly for people who otherwise have limited access to US dollars.
“This partnership aims to have a significant impact on people’s everyday financial lives,” said TBD. “Both fuel the potential for crypto to emerge as a mainstream payment system while establishing decentralized identity as a model for building trust in a scalable, privacy-preserving way.”
Block Head Jack Dorsey has fixed that the US dollar itself is already suffering from hyperinflation. As of August, US CPI inflation was 8.3% annually, well above the 2% target rate.
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