Software Giant SAP Unveils Stellar-Based ‘Digital Currency Hub’ Pilot for Cross-Border Payments System Using USDC

• SAP says that customers now have the opportunity to experience receiving USDC, a cryptocurrency operating on the Ethereum network.

• USDC is the fifth-largest digital asset, boasting a market capitalization of $28.3 billion. 

SAP, the prominent software giant from Germany, has recently revealed its utilization of the U.S. Dollar Coin (USDC) for conducting tests in cross-border payments to revolutionize how businesses handle international money transfers. Peter Schroeder, the Integrated Campaigns Director at Circle, described this move as a significant development. 

The team at @SAP is now testing cross-border payments for their customers with $USDC.https://t.co/QrMHHATsUb pic.twitter.com/mTHWbJde3a

— Peter Schroeder (@peterschroederr) June 22, 2023

By harnessing the potential of blockchain technology and digital currencies, SAP envisions a future where cross-border payments are streamlined, cost-effective, and characterized by enhanced transparency.

Being the largest non-American software company in revenue, SAP acknowledges small and mid-sized enterprises’ challenges when sending money abroad. They believe that the use of “digital money” and blockchain technology can provide a solution to this issue. In this context, USDC, a stablecoin tied to the value of the U.S. dollar, emerges as a suitable cryptocurrency for SAP’s purposes.

According to the company, customers now have the opportunity to experience receiving USDC, a cryptocurrency operating on the Ethereum network, as a form of “play money” to explore the payment option. The testing phase will be conducted on a distinct blockchain separate from Ethereum and not involve actual ERC-20 USDC tokens. However, if clients express interest, the adoption of Ethereum-based cryptocurrencies could experience a significant surge, considering the widespread use of SAP’s services by numerous major corporations.

Additionally, the trial will enable customers to receive a certain amount of USDC cryptocurrency without the capability to use it for making payments. Instead, they will receive the cryptocurrency alongside an invoice to “experience how fast, affordable, and reliable cross-border payments will look like.”

Leveraging the Power of Digital Currency and Blockchain Technology

In a blog published by SAP, Sissi Ruthe, an expert in SAP’s product domain, highlighted the significant hurdles businesses face regarding cross-border payments with international partners. These challenges include high transaction costs of up to $50, lengthy waiting periods of up to seven days, and a lack of transparency throughout the process. SAP aims to streamline the process and make it more efficient for the businesses involved. 

Ruthe emphasizes that combining digital currency and blockchain technology offers an optimal remedy for these persistent pain points. By embracing this cutting-edge approach, companies can enjoy streamlined settlements and improved operational efficiency, thereby overcoming the challenges associated with cross-border payments. This progress marks a significant step in enabling smoother and more cost-effective cross-border payments.

It is worth noting USDC, the fifth-largest digital asset, boasts a market capitalization of $28.3 billion. Notably, Circle, the fintech company responsible for USDC, has been actively advocating in Washington to influence policymakers in formulating final regulations for the digital asset industry.

It is crucial not to overlook the substantial advancement made by SAP in promoting the mainstream adoption of USDC, even in the face of market uncertainties. Introducing rapid, cost-efficient, and dependable cross-border money transfers can bring about a revolutionary change in the global economy.

Furthermore, the collaboration between SAP and USDC is reshaping the landscape of the digital payments industry, with the promise of more impactful partnerships on the horizon.

Crypto News Flash does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.