MoneyGram and Stellar Team Up
MoneyGram International is stepping into the future of finance by partnering with the Stellar blockchain. This collaboration aims to create a platform that utilizes stablecoin technology for international money transfers, making it easier than ever to send funds across borders. With this new service, users of the Stellar wallet can send Circle’s USD Coin (USDC) to recipients worldwide, who can then convert it to fiat currency through the expansive MoneyGram network.
A Word from the CEO
In a recent interview, MoneyGram CEO Alex Holmes emphasized the company’s mission to act as a bridge between the crypto and fiat realms. Holmes stated, “We’re trying to be a bridge from the crypto world to the fiat world.” This sentiment captures the essence of the partnership—bringing the advantages of blockchain technology into everyday financial transactions.
Eschewing Borders: Focus on El Salvador
Interestingly, MoneyGram isn’t stopping there. The company is actively engaging with third-party digital wallet providers in El Salvador. These digital wallets, which co-exist with the government-supported Chivo wallets, were established when Bitcoin was made legal tender in the country. This makes MoneyGram’s move even more strategic as they look to facilitate BTC transfers as well.
Holmes remarked on this initiative, stating, “If a country like El Salvador is going to make Bitcoin seamless with US dollars in-country, then consumers, through MoneyGram, should be able to transfer Bitcoin to El Salvador or transfer dollars and convert them to Bitcoin.” Talk about being ahead of the curve!
A History of Partnerships
MoneyGram’s history with cryptocurrency collaborations is somewhat tumultuous. The company had a previous relationship with Ripple Labs, a partnership that saw its abrupt end in March 2021 when the SEC filed a lawsuit against Ripple. This prompted a class-action lawsuit against MoneyGram. However, every cloud has a silver lining! MoneyGram began collaborating with Stellar in October 2021 and launched a pilot program a month later, indicating a cautious optimism toward the future of digital payments.
The Road Ahead
As digital currencies continue to permeate the mainstream financial ecosystem, MoneyGram’s focus on integrating cryptocurrency with established financial systems could position them as leaders in the industry. Stellar’s interest in acquiring MoneyGram was previously reported, hinting that there may be more to this partnership than meets the eye. Stay tuned, because this story is just getting started!
