SAP Utilizes USDC for Cross-Border Payment Testing
German software giant SAP has made a significant move by using US Dollar Coin (USDC) to experiment with cross-border payments, marking a noteworthy development in the industry. Circle’s integrated campaigns director, Peter Schroeder, described this development as a “big deal.”
SAP, known as the largest non-American software company in terms of revenue, announced that the challenges faced by many small and mid-sized enterprises when sending money overseas can be addressed through the use of “digital money” and blockchain technology. In this case, SAP has chosen to leverage USDC, a stablecoin that is pegged to the U.S. dollar.
The company also shared that its customers now have the opportunity to receive USDC as “play money” for testing purposes. The test will be conducted on a separate blockchain, distinct from Ethereum, and will not involve real ERC-20 USDC tokens. However, if clients demonstrate interest, it could lead to a significant surge in Ethereum-based cryptocurrency adoption, considering the extensive utilization of SAP’s services by major corporations.
SAP’s decision to explore cross-border payments using USDC highlights the growing interest in blockchain-based solutions within the financial sector. By leveraging stablecoins like USDC, businesses can potentially streamline and simplify their international payment processes. This development underscores the potential for increased adoption of cryptocurrencies and blockchain technology in mainstream financial operations.