In a recent development, popular money transfer service provider, MoneyGram revealed plans to allow users to send stablecoins. These users will also be able to convert these stablecoins to fiat. MoneyGram will collaborate with the popular Stellar Blockchain to implement the idea.
Digital currencies, primarily cryptocurrencies, are finding a solid place in the global payments infrastructure. It is one of the most popular use cases for crypto, helping to make the concept more relevant to consumers around the world. Additionally, stablecoins have proven to be an essential tool in facilitating digital payments. They act as a hedge against market volatility and secure investors’ assets.
This is also a reason why several organizations and companies are considering incorporating the use of stablecoins into their working models. They aim to attract more consumers through this stage.
MoneyGram will try its luck with stablecoins
As one of the largest money transfer service providers in the world, MoneyGram has earned a credible reputation in the market. The company is making its way into the world of stablecoins, however. MoneyGram CEO Alex Holmes believes the crypto industry is here to stay and grow. He shared his excitement for the proposed development and said the overall crypto industry will continue to grow despite volatility and sell-off concerns.
Additionally, Holmes added that crypto and fiat do not get along well. There is a lot of difference between the two concepts of money. Therefore, MoneyGram aims to fill this gap and make these concepts more compatible with each other. Additionally, MoneyGram has already released support for Bitcoin through its platform. Previously, users could enjoy bitcoin services on MoneyGram.
Nevertheless, MoneyGram is now partnering with Stellar Blockchain to enable USDC remittances to its users. While using these services, consumers will also be able to convert their USDC assets into fiat currency. The USD Coin (USDC) is one of the most popular and trusted stablecoins in the crypto space. Therefore, with its integration, MoneyGram hopes to offer more credible services to its users.
USDC issuer Circle is also a major contributor to the execution of this plan. After the Terra UST crash, consumers lost faith in stablecoins as their peg status was questioned by almost everyone. However, Circle’s CSO has assured its consumers that USDC is backed by safe and secure liquid assets. Consequently, its unanchoring is not possible and it will not take the same path as the UST. This assurance from the company’s CSO has proven to be a major relief for USDC consumers.
Cryptocurrencies continue to make their way into the traditional setup
This recent development shows that there is no stopping the growing demand and relevance of cryptocurrencies. More and more companies are exploring ways to integrate crypto, and this will only increase the scope of the concept. The MoneyGram CEO also said that despite the continued market decline, crypto is here to stay and has a bright future ahead of it.
Additionally, Holmes also praised El Salvador’s decision to make Bitcoin legal tender. He insisted that MoneyGram would try to boost crypto adoption in El Salvador through its platform. They will do this by providing a safe and transparent exchange channel for Bitcoin users in the country. The CEO further hinted that they are having discussions with several authorities to competently execute these plans.
Nevertheless, the latest collaboration between MoneyGram and the Stellar blockchain has been welcomed by consumers. This could turn out to be the start of something exciting for the crypto community. Also, such a development was necessary because the stablecoin market was little impacted due to the UST crash.