One of the largest money-transfer services in the US, MoneyGram aims to launch a new service that would enable users to transfer money overseas via stablecoins.
The plan is in collaboration with the Stellar (XLM) blockchain, a decentralized protocol specializing in cross-border transfers, and it would allow users to change their stablecoins to actual currency at MoneyGram agent locations. In addition, CEO Alex Holmes shared his optimistic view on the crypto industry, predicting it is “here to stay and it’s going to be here for a long time despite recent selloffs and volatility.”
Holmes argued that cryptocurrencies and fiat are “not really compatible today.” As such, one of MoneyGram’s goals is to establish a bridge between the two.
While the company has already supplied bitcoin services to clients, it is now also interested in stablecoins. It is preparing to enable users to make USDC remittances through cooperation with Stellar Blockchain. Customers will also be able to withdraw their funds through MoneyGram’s network.
“The world of crypto and the world of fiat are not really compatible today,” MoneyGram CEO Alex Holmes is quoted as saying. “We’re trying to be a bridge from the crypto world to the fiat world.”
This project comes at a time when stablecoins, crypto-assets that attempt to retain their peg with fiat currencies, have been re-examined following the controversial de-pegging of Terra’s stablecoin UST, which resulted in the collapse of the entire ecosystem.
Circle’s CSO addressed concerns about the recent crash of Terra’s algorithmic stablecoin – UST – which was one of the most significant occurrences in the cryptocurrency market this month. The asset has lost its peg and is now trading around $0.03. Dante Disparte, CSO of Circle (the business behind USDC), emphasized that de-pegging is unlikely because the stablecoin is fully backed by safe liquid assets:
“We’re not taking the dollar and putting it in the reserves and then lending it out. Instead, the reserves are strictly cash and US Treasuries.”
As reported, MoneyGram first unveiled a partnership with Stellar in October 2021, announcing plans to create instant money transfers using USD coin (USDC) stablecoin.
MoneyGram’s CEO also weighed in on the cryptocurrency market’s continuous collapse. Despite the current “selloff and volatility,” he remains confident about its future, predicting that it will remain a critical component of the financial network for a long time.
“I think adopting it, bringing it into the mainstream is important,” he opined.
In addition, Holmes mentioned El Salvador‘s trailblazing decision to make bitcoin an official tender. He stated that MoneyGram wishes to accelerate adoption in the country and is presently in talks with authorities:
“If a country like El Salvador is going to make Bitcoin seamless with US dollars in country, I think that consumers, through MoneyGram, should be able to 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.”
At the time of writing, the 26th coin by market capitalization, Stellar’s native token XLM, is trading at $0.14, up by 4.23% over the past 24 hours and 9.68% in a week. The coin is down 16.77% in a month and 82.1% from its all-time high of $0.875 recorded in January 2018.
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