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Top money-transfer services in the U.S., MoneyGram collaborates with Stellar blockchain to introduce a service that will enable users to send stablecoins and easily convert them to fiat currency using MoneyGram’s network.
According to the CEO of MoneyGram, Alex Holmes, the crypto industry is here to stay and flourish despite all the volatility and recent dip in prices. Holmes explains that the crypto world and traditional fiat world might not be compatible today, but we are trying to build a bridge between both these worlds.
Users that own Stellar blockchain digital wallets will now be able to convert their holdings into USDC, a stablecoin by Circle, once the service becomes operational. The company is now looking to extend services through it already provides clients with Bitcoin services.
The partnership will allow users to perform USDC remittances. The decision comes at a time when crypto remittances are rising in popularity in emerging markets and as stablecoins suffer growing scrutiny after the Terra-UST debacle.
The Terra collapse early this May has led to a wider crackdown in the crypto market. The stablecoins faced the most wrath. Even after witnessing all the volatility and sell-off, the CEO of MoneyGram is hopeful regarding the future of the company. He says that it will continue to be a major feature of the financial network for a long time.
The new service powered by Stellar can also help in spreading cryptocurrency adoption in emerging markets. Last year, remittances to low and middle-income countries rose to $589 billion and were expected to increase even more this year. Remittances constitute a major portion of the GDP of a country.
In countries like El Salvador, they account for over 20 percent of the gross domestic product. Crypto adoption can further increase if remittances are started given via cryptos.
Holmes believes that if a country such as El Salvador started making Bitcoin seamless with U.S. Dollars, then consumers using MoneyGram can transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin.” If that’s where the world is going, let’s participate in that world, and let’s see how we can help fulfill that opportunity,” he adds.
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Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
