money transfer company moneygram He wants to launch a new service that will allow users to make transfers abroad via stablecoins. This initiative is part of a partnership with excellent (XLM), a decentralized protocol that specializes in cross-border transactions.
According to a recent Bloomberg article, it will allow users to convert their stablecoins into fiat currency at MoneyGram agent offices.
“The world of crypto and the world of fiat money are really incompatible today,” MoneyGram CEO said, Alex Holmes. “We try to be a bridge between the two.”
The project comes at a time when stablecoins, a cryptocurrency that seeks to maintain its fiat correlation, is facing a lot of criticism after the famous “decoupling” of UST, the decentralized stablecoin Terra (LUNA), which led to the collapse of the entire ecosystem.
This event also had a resounding effect on the entire industry, causing a crash in the cryptocurrency market. Today, Bitcoin (BTC) is trading around $30,600, down nearly 21% in one month and more than 55% from its all-time high. Similarly, Ethereum (ETH) is down 32.5% in one month, 61% from its all-time high, and is currently trading at $1,890.
Despite the uncertainty, Holmes said he remains confident about the future of cryptocurrencies.
He said cryptocurrencies are “obviously going to be and will be here for a long time despite the recent crashes and volatility.” “I think adopting it, bringing it into the mainstream is important.”
As noted, MoneyGram unveiled a partnership with Stellar in October 2021, to make instant money transfers through the US dollar (USDC) stablecoin.
Previously, MoneyGram had a partnership with ripple. The partnership was signed in 2019, allowing MoneyGram to use Ripple’s services for cross-border payments and forex settlement.
However, after Securities and Exchange Commission (SEC) from the United States has filed a lawsuit against Ripple, alleging that it participated in the illegal sale of securities through XRP, and MoneyGram was also the victim of a lawsuit for making false and/or misleading statements regarding the legal status of the XRP token.
As a result, the money transfer company terminated its partnership with Ripple. However, MoneyGram said it will continue to support Ripple.
The new MoneyGram initiative comes with the increasing importance of remittances in emerging markets. according to world bankAccording to Bloomberg, remittances to low- and middle-income countries totaled $589 billion last year and are expected to continue rising this year.
The relationship between remittances and cryptocurrencies has also grown exponentially. Countries like El Salvador, which accuse money transfer companies of charging high fees, have made bitcoin legal tender to enable more efficient money transfers.
“There are billions of people around the world who rely on cash and can take advantage of the tool offered by digital assets and the blockchain,” he said. Denil DixonCEO of stellar development foundationadding:
“The answer is what we are building through this partnership — a service to help them transition from cash to digital assets.”
The 25 largest crypto-asset by market capitalization, Stellar’s native token, XLM, is trading at $0.14, up nearly 14% in the past 24 hours and 4% in the week. It is down 20.6% in one month and 83.8% from an all-time high of $0.875 recorded in January 2018.
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