MoneyGram, a global remittance firm, announced last Saturday 11th the introduction of its new payment channel connected to the USD Coin (USDC) stablecoin, which is already operational in Canada, the United States, Kenya, and the Philippines.
MoneyGram’s remittance service runs on the Stellar network and takes advantage of the USDC stablecoin’s features. Users may make transfers, and receivers can withdraw funds from approved branches.
The news came during the Consensus 2022 event when Stellar Foundation CEO Denelle Dixon spoke on one of the panels. In this regard, she stated that this new transfer channel would assist the world’s unbanked people to have access to the digital economy for the first time through a crypto-fiat service that works in real-time.
Going deeper into the latter, Dixon stated that around 1.7 billion unbanked people might benefit, since this is one of several solutions being created using Blockchain technology, the major focus of which is to give financial access mechanisms to all those who have been excluded.
MoneyGram’s remittance service will allow users to send USDC monies from their wallets to recipients all over the world, which the recipients will be able to withdraw in cash through the local locations. For the time being, it will only be available in the aforementioned nations, but a broader international deployment is scheduled by the end of this month. Furthermore, transfers using stablecoins do not need the payment of fees during the first year of operation.
Today’s announcement reaffirms MoneyGram’s collaboration with the USDC and Stellar team, specifically for the development of goods and services that improve the quality of life for stakeholders throughout the world.
Remember that at the end of May, MoneyGram CEO Alex Holmes stated in an interview with Bloomberg that he had a very strong perspective on the function of stablecoins in remittance services, ensuring that cryptocurrencies, in general, could work alongside fiat money to fulfill needs:
“The cryptocurrency and fiat money worlds are currently incompatible. We are attempting to bridge the gap between the Bitcoin and fiat worlds.”
“Despite the current sell-off and volatility, [cryptocurrencies] are clearly here to stay and will be for a long time… I believe it is critical to embrace them and bring them into the mainstream.”