One of the largest money transfer services in the world – MoneyGram – plans to enable users to send stablecoins and convert them to fiat currency. The company will collaborate with Stellar Blockchain to execute the move.
In addition, CEO Alex Holmes shared his optimistic view on the crypto industry, predicting it is “here to stay and it’s going to be here for a long time despite recent selloffs and volatility.”
MoneyGram to Interact With Stablecoins
In a recent interview for Bloomberg News, Holmes argued that cryptocurrencies and fiat are “not really compatible today.” As such, one of MoneyGram’s goals is to establish a bridge between the two.
And while the company has already provided bitcoin services to clients, it is now eyeing stablecoins, too. Through a partnership with Stellar Blockchain, it is getting ready to enable users to conduct USDC remittances. Customers would also be able to cash out those holdings using MoneyGram’s network.
The CSO of Circle addressed concerns related to the recent crash of Terra’s algorithmic stablecoin – UST – which was one of the top events in the cryptocurrency world this month. The asset lost its peg and is currently trading at around $0.03. Dante Disparte – CSO of Circle (the company that issues USDC) – assured that de-pegging is unlikely to occur because the stablecoin is fully backed by safe liquid assets:
“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.”
Crypto is Here to Stay
MoneyGram’s CEO also gave his two cents on the ongoing decline of the cryptocurrency market. Despite the recent “selloff and volatility,” he is optimistic about its future, forecasting it will remain a key feature of the financial network for a long time.
“I think adopting it, bringing it into the mainstream is important,” he opined.
In addition, Holmes touched upon El Salvador’s pioneering move to make bitcoin legal tender. He said MoneyGram wants to boost the pace of adoption in the country and is currently holding discussions with the authorities:
“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.”