MoneyGram, one of the world’s largest money transfer providers, aims to allow users to transmit stablecoins and convert them to fiat currency. The move will be carried out in collaboration with Stellar Blockchain.
In addition, despite recent selloffs and volatility, CEO Alex Holmes expressed optimism in the crypto industry, predicting that it is “here to stay and it’s going to be here for a long time.”
In a recent Bloomberg News interview, Holmes stated that cryptocurrencies and fiat currency are “not actually compatible now.” As a result, one of MoneyGram’s objectives is to build a link between the two.
While the company already offers bitcoin services to customers, it is now looking into stablecoins as well. It is preparing to enable users to send USDC remittances through cooperation with Stellar Blockchain. MoneyGram’s network would also allow customers to cash out their holdings.
Circle’s CSO addressed concerns about Terra’s algorithmic stablecoin, UST, which was one of the most talked-about occurrences in the cryptocurrency market this month. The asset has lost its peg and is now worth roughly $0.03. De-pegging is improbable, according to Dante Disparte, CSO of Circle (the company that issues USDC), because the stablecoin is entirely 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.”
MoneyGram’s CEO also weighed in on the cryptocurrency market’s continuous collapse. Despite the current “selloff and volatility,” he remains confident about the future of the financial network, predicting that it will remain an important component for a long time.
“I think it’s necessary to adopt it and bring it into the mainstream,” he said.
