MoneyGram to form blockchain alliance for Stablecoin-to-Fiat transfers

MoneyGram to form blockchain alliance for Stablecoin-to-Fiat transfers

MoneyGram, an American cross-border P2P payments and money transfer company, has stated that it is preparing to offer a service where users can convert their stable coins to hard cash currency.

According to sources familiar with the move, MoneyGram will be launching this service in partnership with open-source payment technology firm Stellar blockchain.

In an interview, MoneyGram CEO, Alex Holmes said that the world of fiat and the world of crypto is not compatible today. The firm is trying to be a center point connecting the crypto world to the fiat world.

Under this collaboration, users having digital wallets on the Stellar blockchain will be able to convert the holdings into Circle’s USDC stable coin and then cash it out via MoneyGram.

This news takes place as there has been increased popularity for remittances, and stable coins have been coming under more inspection.

This is especially true after the UST stable coin collapsed which impacted the public image of the assets.

Terra and USDC are different, supported by dollar-equivalent assets set aside in reserves. But according to some critics, there is a risk that other stable coins could fail.

Dante Disparte, chief strategy officer and head of global policy for Circle, said that there’s not expected to be a de-pegging with USDC as safe liquid assets completely support the currency.

According to related news, Hilary Jackson, MoneyGram’s chief operating officer, left her position recently. The responsibilities of Jackson were assigned to the other executives of the firm.

In 2021, she was named the COO of MoneyGram, and prior to that served as COO at Selene Financial, along with a previous five-year experience with Capital One as the head of loan servicing and head of technology for top products.

Incidentally, MoneyGram is also stuck in a lawsuit filed by CFPB (Consumer Financial Protection Bureau), as the company allegedly failed to offer timely payments for overseas recipients.

Source Credit - https://www.pymnts.com/cryptocurrency/2022/moneygram-to-launch-blockchain-partnership-for-stablecoin-to-fiat-remittances/