In a recent development, the popular money transfer service provider, MoneyGram has revealed its plans of enabling users to send stablecoins. These users will also be able to convert these stablecoins into fiat. MoneyGram will collaborate with the popular Stellar Blockchain to implement the idea.
Digital currencies, mainly cryptocurrencies, are finding a strong footing in the global payments infrastructure. It is one of the most popular use-cases of crypto, which is helping in making the concept more relevant to worldwide consumers. Moreover, stablecoins have proved to be an essential tool in making digital payments easier. They act as a hedge against market volatility and secure the assets of investors.
This is also a reason that several organizations and firms are planning to integrate the use of stablecoins in their working models. They aim to attract more consumers through this step.
MoneyGram will try its luck with stablecoins
Being among the largest money transfer service providers in the world, MoneyGram has earned a credible name in the market. The company is, however, making its way into the world of stablecoins. The Chief Executive Officer (CEO) of MoneyGram, Alex Holmes believes that the crypto sector is here to stay and grow. He shared his excitement over the proposed development and stated that the overall crypto industry will continue to grow despite concerns of volatility and sell-offs.
Furthermore, Holmes added that crypto and fiat do not settle well with each other. There is a lot of gap between the two currency concepts. Therefore, MoneyGram aims to fill this gap and make these concepts more compatible with each other. Moreover, MoneyGram has already issued support for Bitcoin through its platform. Previously, users were able to enjoy Bitcoin services on MoneyGram.
Nonetheless, MoneyGram is now joining hands with the Stellar Blockchain to enable USDC remittances for its users. While using these services, consumers will also be able to convert their USDC assets into fiat currency. The USD Coin (USDC) is among the most popular and reliable stablecoins in the crypto space. Therefore, with its integration, MoneyGram is hoping to offer more credible services to its users.
The issuer of USDC, Circle is also a major contributor to the execution of this plan. After the crash of Terra’s UST, consumers lost their faith in stablecoins, as their pegging status was questioned by almost everyone. However, the CSO of Circle has assured its consumers that USDC is backed by safe and secure liquid assets. Therefore, its de-pegging is not possible, and it will not go down the same road as UST. This reassurance from the CSO of the company proved to be a major relief for USDC consumers.
Cryptocurrencies continue to make a way in the traditional setup
This recent development shows that there is nothing stopping the increasing demand and relevance of cryptocurrencies. More and more companies are exploring ways to incorporate crypto, and this will only increase the scope of the concept. The CEO of MoneyGram also said that despite the ongoing decline of the market, crypto is here to stay and has a bright future ahead.
Moreover, Holmes also praised the move of El Salvador to make Bitcoin a legal tender. He insisted that MoneyGram will try to boost crypto adoption in El Salvador through its platform. They will do so by providing a safe and seamless exchange route for Bitcoin users in the country. The CEO further hinted that they are having discussions with several authorities to execute these plans in a proficient manner.
Nonetheless, the latest collaboration between MoneyGram and the Stellar blockchain has received praise among consumers. It could prove to be the beginning of something exciting for the crypto community. Also, such development was needed as the stablecoin market was poorly impacted because of the crash of UST.