Using USDC for international transfers in Indonesia

Just as we have language barriers in global communication because of varying languages across countries, there are also barriers to global transactions due to differences in currencies. Stable digital currencies like USDC offer a unique option for international transactions, allowing users to avoid the volatility of local currencies. It is like having a universal language for global conversations.

Indonesia has a vast diaspora, a growing number of freelancers, and a booming export sector. Traditional methods, such as bank wires and money transfer services, often come with high fees, lengthy processing times, and exchange rate markups. As USDC gains traction among businesses, freelancers, and families sending money home, this article explores how to use USDC for international transfers in Indonesia.

Also read: FX-saving strategies every freelancer in Indonesia should know

Understanding USDC and how it works

USDC, or USD Coin, is a stablecoin issued by Circle and pegged 1:1 to the US dollar. Unlike volatile cryptocurrencies such as Bitcoin or Ethereum, USDC maintains a stable value because each coin is backed by actual dollar reserves or equivalent assets held by regulated financial institutions.

When you hold or send USDC, you’re essentially using a digital representation of the US dollar on the blockchain. Transactions occur on networks like Ethereum, Solana, and Polygon, enabling instant, low-cost global transfers without intermediaries.

USDC facilitates 24/7 global transactions that settle in seconds, bypassing traditional banking hours and intermediaries. In the context of international transfers, USDC acts as a bridge currency, allowing users to send value across borders without the volatility risks associated with other digital assets.

Indonesia’s position on USDC use

Indonesia's approach to cryptocurrencies and stablecoins is progressive yet cautious. Indonesia's Financial Services Authority (OJK) recently took over the supervision of cryptoassets from the Commodity Futures Trading Regulatory Agency (BAPPEBTI). This transition is part of the government’s effort to regulate digital currencies under the same supervisory framework as other financial instruments. Stablecoins like USDC, USDT, and others are legally tradable on registered exchanges but are not recognised as legal tender. This means they can be used for trading and transfers, but transactions must comply with anti-money laundering (AML) and Know Your Customer (KYC) requirements.

Indonesia remains a leading global market for stablecoin activity, accounting for nearly $3 million in monthly transaction volume. Industry players are also pushing for stablecoins to be recognised as legal tender to encourage more global transactions. However, there are no outright bans on USDC use, and platforms under OJK/BAPPEBTI supervision can facilitate USDC transactions.

Benefits of using USDC for international transfers

There are many perks to using USDC for international transactions in Indonesia.

1. Faster transaction times

Traditional international transfer services can take two to five business days to complete transactions, especially through SWIFT networks. On the other hand, USDC transfers are processed within minutes, often regardless of borders or banking hours.

2. Lower fees

Sending USDC incurs minimal network fees compared to bank wire charges. Even worse, some of these banks often include hidden conversion markups and intermediary fees. USDC transactions help freelancers and small businesses working with foreign clients save on transaction fees.

3. Stable value

Unlike other cryptocurrencies whose prices fluctuate, USDC remains pegged to the US dollar. This stability makes it a reliable option for cross-border payments without worrying about sudden value loss. It is also not subject to the vulnerability of the rupiah.

4. Transparency and security

USDC Transactions are recorded on public blockchains, providing complete transparency and traceability.

Also read: Grey vs. local banks: The best currency exchange choice in Indonesia

How to use USDC for international transactions in Indonesia

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There are various local and international platforms for USDC transfers in Indonesia. These platforms allow users to buy, sell, and convert USDC directly. Receiving USDC payments in Indonesia generally involves these key steps:

• Sender acquires USDC: The sender buys USDC on a cryptocurrency exchange in their country using their local currency.
• Sender sends USDC: The sender transfers the USDC from their crypto wallet to your wallet address. Choose a compatible wallet, such as MetaMask, Trust Wallet, or a platform-specific wallet from Binance or Circle. Ensure it supports the blockchain network (e.g., Ethereum or Solana) for lower fees. This is typically faster and cheaper than a traditional international wire transfer.
• Recipient converts USDC: The recipient in Indonesia receives USDC and then uses a licensed local crypto exchange or a fintech platform to convert it into IDR.
• Recipient cashes out IDR: The recipient can withdraw the IDR from the crypto exchange to their local bank account, linked e-wallet or P2P. You can also sell USDC on a local exchange like Indodax for IDR, which is then deposited into a bank account.

Also read: How freelancers in Indonesia can receive payments from the US, UK & EU clients

The smarter way to manage USDC transactions in Indonesia

USDC offers freelancers and businesses an efficient way to receive international payments without the delays and high costs of international bank wire transfers. In addition to crypto wallets and exchanges, Grey offers an efficient platform for USDC transactions. With multi-currency accounts supporting USD, EUR, and GBP transactions, users can easily receive USDC and convert at the best rates to various currencies and manage on the same platforms.

Receiving USDC is straightforward and instant, with Grey automatically converting it to USD in your account.

1. Sign up: Download the Grey app or visit Grey’s website. Click "Sign Up" and provide your email, phone number, and create a password.
2. Verify your identity (KYC): Complete the verification process by uploading a valid government-issued ID (e.g., passport or national ID), a selfie, and proof of address (e.g., utility bill or bank statement).
3. Set up a USD account: Once verified, navigate to "Accounts" in the app. Create a USD account.
4. Log in to the app: Open the Grey app and sign in.
5. Access your USD balance: Go to "Accounts" and select your USD account.
6. Generate or share wallet address: Click the "Add" or "Receive" button, then select "Add via stablecoins" or "Receive USDC." Grey will provide a wallet address compatible with supported networks. Share this address with the sender.
7. Receive and convert: Once the sender transfers USDC, Grey converts it to USD instantly and deposits it into your account. You'll receive a notification.

You can also send USDC via Grey by following these easy steps:

1. Log in and select USD balance: Open the app, go to "Accounts," and choose your USD account.
2. Initiate send: Click "Send" or "Send Money," then select "Send via crypto" or "Send via stablecoins."
3. Enter details: Input the recipient's wallet address. Select the network and enter the USDC amount.
4. Review and confirm: Double-check the address, network, and amount to avoid errors.
5. Send: Tap "Send" to complete the transaction. The recipient receives USDC almost instantly, and your USD balance is debited accordingly.

Managing USDC on Grey streamlines international finances with instant, low-cost transactions.

Get started on Grey today for seamless USDC transactions.

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