MoneyGram will launch a money transfer service with USDC based on the Stellar blockchain.
- MoneyGram will adopt USDC for international remittances.
- MoneyGram’s CEO was optimistic about cryptocurrencies.
- MoneyGram is working to add Bitcoin to its remittance services in El Salvador.
The U.S.-based money transfer company, MoneyGram is betting on the stablecoins despite the chaos seen recently in that market.
In an interview for Bloomberg In his speech, the company’s CEO, Alex Holmes, talked about the potential of stable currencies for remittance services and money transfers. Holmes said that MoneyGram is about to launch a money platform a place to buy, sell and store cryptocurrency that will allow users to send money to their friends and family. stablecoins and easily convert them into fiat currency.
The world of cryptocurrencies and the world of fiat fiat currency is “legal tender” backed by a central government, such as the Federal Reserve, and with its own banking system, such as fractional reserve banking. It can take the form of physical cash, or it can be represented electronically, such as with bank credit. money are not really compatible today. We are trying to be a bridge between the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. world and the fiat world.
The new service will be based on the stablecoin a cryptocurrency with extremely low volatility, sometimes used as a means of portfolio diversification. Examples include gold-backed cryptocurrency or fiat-pegged cryptocurrency. USDC, from Circle and will be launched in collaboration with partner Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. de MoneyGram , Stellar . Una vez en marcha, los usuarios con carteras digitales de Stellar (XLM) will be able to convert their USDC currencies into fiat mediante la red de MoneyGram …Dijo Holmes.
Remittance service with USDC
The news comes at a time when the stablecoins face increased scrutiny from regulators and market an area or arena, online or offline, in which commercial dealings are conducted. observers in general. A few weeks ago, the third largest decentralized decentralization refers to the property of a system in which nodes or actors work in concert in a distributed fashion to achieve a common goal. stable coin, USD Land (UST), decoupled from the US dollar. The unpegging created an implosion in the US dollar ecosystem. Earth and wreaked havoc on the broader cryptocurrency market.
Some of the main stablecoins were less stable than expected during the collapse, includingTether (USDT), which momentarily lost its parity. The now failed UST, which failed to reach its expected level of USD $1 again, is now behind the project. Earth which was relaunched on Saturday.
The dramatic collapse negatively impacted the cryptocurrency market, which has remained down for much of 2022. Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. is trading just above USD $30,000, more than 55% below its all-time price high recorded in November. Things are not much different for the major altcoins which have also fallen back significantly.
Despite this discouraging outlook for investors, Holmes expressed optimism for the future of digital currencies. The cryptocurrency “ is obviously here to stay and will be here for a long a situation where you buy a cryptocurrency with the expectation of selling it at a higher price for profit later. time despite the recent sell-off and volatility. “ , dijo. “ I think embracing it [and] bringing it into the mainstream is important. “.
Expansion into Bitcoin and cryptocurrencies
The CEO of MoneyGram He also expressed confidence in the new remittance service based on the stablecoins The asset class, which in his view offers more advantages than others such as Bitcoin in terms of expense for cross-border transactions. In this context, Holmes questioned Nayib Bukele’s promise that the flagship cryptocurrency could help reduce remittance costs.
The costs of acquiring and transferring Bitcoin through custody custody is a financial institution's legal capacity to keep and preserve financial assets for its clients to avoid asset theft or loss. wallets or exchanges and converting it back to dollars at the receiving end can outperform those of traditional remittance networks, he added.
However, despite the President of El Salvador’s criticism of the traditional remittance companies, he revealed that MoneyGram is currently holding talks with the Central American country to implement Bitcoin in your international money transfer services. “ I think consumers, through MoneyGram, should be able to transfer Bitcoin to El Salvador or transfer dollars and convert them into Bitcoin. “ Holmes said, referring to the new law that recognizes the cryptocurrency as an official currency.
If that’s where the world is going, let’s participate in that world and see how we can help fulfill that opportunity. “.
MoneyGram, partner of Stellar
According to Bloomberg The news comes at a time of growing demand for the remittance sector. Remittances to low- and middle-income countries grew to USD $589 billion last year and are expected to increase this year, the newspaper said, citing World Bank figures. In the case of countries such as El Salvador, which converted to Bitcoin in legal tender last year, remittances accounted for more than 20 per cent of gross domestic product.
This could mean a promising horizon for MoneyGram in expanding its business into cryptocurrencies, an issue on which the CEO of the Stellar Development Foundation Denelle Dixon also expressed optimism.
“ There are billions of cash-dependent people around the world who could benefit from the utility of digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets and Blockchain. “, dijo Dixon a Bloomberg .
The answer is what we are building through this partnership: a service to help them move from cash cash is the most liquid form of money: physical coins and banknotes in the most narrow sense of the term. to digital assets.
MoneyGram y Stellar have partnered with in October last year to develop a cryptocurrency remittance service and launched a pilot program in November. At the time, the news came several months after the remittance giantfinalizara un acuerdo con Ripple due to that company’s ongoing lawsuit with the U.S. Securities and Exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. Commission.
- MoneyGram will allow users to buy Bitcoin and withdraw cash holdings at their U.S. locations
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Article by Hannah Estefania Perez / DiarioBitcoin
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