In an effort to broaden the use of digital currencies, one of the largest money-transfer services in the US has created a digital currency exchange program. The MoneyGram International Inc. is planning to launch a service in partnership with the Stellar blockchain that would allow users to send stablecoins and convert them easily into hard currency.
The world of crypto and the world of fiat are not really compatible today, We’re trying to be a bridge from the crypto world to the fiat world.
MoneyGram Chief Executive Officer Alex Holmes in an interview with Bloomberg News.
In addition to the government-backed Chivo wallets that have been introduced since El Salvador legalized Bitcoin (BTC) last year, MoneyGram has been in direct talks with companies that provide digital wallet solutions there. If MoneyGram could secure a deal with one of these companies, it would also be able to compete for BTC transfers.
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.
Holmes told Bloomberg
In October 2021, MoneyGram and Stellar began working together, and launched a pilot program a month later. The news circulated earlier that summer that Stellar was interested in taking over MoneyGram through an acquisition.
Holmes said that, once the service launches, users with digital wallets using the Stellar blockchain will be able to transfer their holdings into Circle Internet Financial’s USDC stablecoin, which can be sold through MoneyGram’s network, once the service has launched.
This is a significant step that comes during a time when remittances are becoming more popular in emerging markets, but as stablecoins – digital assets intended to maintain a 1-to-1 value with a commodity or currency like the US dollar – are facing increasing scrutiny.
