MoneyGram, Stellar blockchain in stablecoin remittance agreement.

The money transfer giant MoneyGram is aiming to connect its service with the Stellar blockchain. To enable its customers to send and convert stablecoins into fiat currency.

MoneyGram CEO, Alex Holmes, view on the crypto industry was optimistic saying:

“Crypto industry is here to stay and it’s going to be here for a long time despite recent selloffs and volatility.”

MoneyGram to set up a link between crypto and fiat currencies

During a recent interview with Bloomberg, Holmes said that because fiat and cryptocurrency are “not compatible right now.” The company’s primary goal is to establish a connection between them. The MoneyGram CEO continues:

“We want to be in the middle of that conversation. We think it needs to happen and we’re going to provide that bridge. So whether it’s a dollar or a euro or a Brazilian real. You should be able to send it into the system and have the ability to receive it.

Meanwhile, the firm provides Bitcoin services to customers and enables its users to make USDC payments through its relationship with Stellar. Customers can also withdraw funds using MoneyGram.

The partnership is a win-win for both companies. MoneyGram gets access to Stellar’s ecosystem of clients and developers. While Stellar gets the backing of a well-established company in the money transfer space.

This could help accelerate the adoption of the Stellar network and its associated technologies.

During the panel, Disparte explains that USDC will be fully backed by safe liquid assets and would not be de-pegged like TerraUSD.

“The USDC stablecoin is the first digital dollar that allows for rapid, low-cost global transfers while maintaining price stability. 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.”

MoneyGram advocate Crypto adoption

Despite the ongoing crypto market crash, Holmes said that he is optimistic about the future of crypto which he sees as a key feature of the financial network saying:

“I think adopting it, bringing it into the mainstream is important.”

“Cryptocurrency is a good idea on many levels and we are supportive of it. Virtual currencies are here to stay.”

He also states that the company will be expanding its crypto services to other countries shortly. When asked whether Tokenization would replace fiat, he responded:

“Tokenization of assets is coming, it will replace fiat currency at some point.”

“Making Bitcoin a legal tender is a big step. We are having discussions with the regulators in the U.S. about how to do that here. It would be a good thing for the crypto industry if that happens.”

He also comments on El Salvador’s decision to make Bitcoin a legal currency. States that his firm is continuing talks with the authorities to increase usage:

“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.”

It’s great to see one of the biggest money transfer companies in the world supporting cryptocurrency. Not only does it legitimize the technology, but it could also lead to more widespread adoption. Let’s hope other companies follow MoneyGram’s lead.

In an attempt to speed up cryptocurrency adoption, (SDF) has partnered with one of the world’s largest money transfer companies, MoneyGram.

The two have signed an agreement that will see MoneyGram use (SDF) tokens to facilitate cross-border payments.

MoneyGram, a leading global money transfer company, has entered into a strategic partnership. With the Stellar Development Foundation (SDF) to pilot the use of stablecoin for cross-border payments.