07/06/2022
MoneyGram is preparing to launch a stable money transfer service using the Stellar blockchain.

  • MoneyGram will continue to add USDC stablecoin to money transfer services despite the collapse of Terra.
  • “We are trying to be a bridge from the world of crypto to the world of digital currencies,” CEO Alex Holmes told Bloomberg.
  • Meanwhile, MoneyGram wants to engage in bitcoin transfers to El Salvador, where remittances account for 20% of GDP.

MoneyGram is preparing to add USDC stablecoin to money transfer services, despite the recent Terra crash, in a vote of confidence in cryptocurrencies.

At the same time, the US company wants to contribute to the costs of transfer providers to transfer Bitcoin to El Salvador, despite criticism from President Nayib Bukele.

MoneyGram is still trying to roll out a service that allows customers to convert their holdings in wallets on the Stellar blockchain into Circle’s USDC stablecoin. You can then send it inside the US or abroad and convert it into hard currency.

“The cryptocurrency is clearly here to stay and will be here for a long time to come despite the recent sell-off and volatility,” Alex Holmes, CEO of MoneyGram, told Bloomberg. “It is important that you take it upon yourself, to circulate it.”

The collapse of the algorithmic stablecoin TerraUSD from Terra and its sister Luna in early May led to a broader crash in the cryptocurrency market. The USDT’s loss of correlation with the dollar and the subsequent death spiral – a 97% drop to near zero – eroded confidence in the stablecoin in general.

Despite this negative backdrop, Holmes still sees hope in stablecoins as a way to circumvent what he sees as a lack of compatibility between cryptocurrencies and government-issued currencies like the dollar.

“We are trying to connect the cryptocurrency world with the monetary world,” Holmes said, according to a Bloomberg report released on Sunday.

One place MoneyGram is eyeing is El Salvador, whose government submitted the groundbreaking legal tender for the cryptocurrency Bitcoin in September.

International remittances account for more than 20% of the country’s GDP, and his government, led by Bukele, has taken this step in part to help its citizens avoid $400 million annually in wire transfer fees.

“If a country like El Salvador wants bitcoin to work seamlessly with US dollars within the country, I think consumers should be able to transfer bitcoin to El Salvador or convert dollars and convert them into bitcoin through MoneyGram,” Holmes said.

“As the world progresses, let’s be a part of that world and see how we can help seize this opportunity,” he added.

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