In recent years, major corporations have been looking for ways to incorporate cryptocurrencies into their operations. So naturally, these companies want the benefits of blockchain without having any responsibility or risk associated with them – which is why we’ve seen so many starts dipping their toes in the water.
MoneyGram is the latest company to jump on board with this new fintech trend. According to a Bloomberg report, MoneyGram International has partnered with the Stellar (XLM) blockchain to create a new service that will let people send stablecoins and convert them into hard currencies.
It’s huge news for both crypto enthusiasts who want more fiat coverage in their investments and those looking forward to moving away from traditional financial systems altogether.
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In a recent interview with Bloomberg media, MoneyGram CEO Alex Holmes said stablecoins are beginning to take off as a significant medium for exchange.
The world of crypto and the world of fiat are not really compatible today. We’re trying to be a bridge from the crypto world to the fiat world.
MoneyGram is working together with the Stellar blockchain to let people use digital wallets on its platform to convert their balances into Circle Internet Financial’s stablecoin. This will allow them later cash out through Money Gram’s payment processing system.
Are Stablecoins Safe Enough?
Recently, there has been a lot of talk about stablecoins. These are crypto-assets that are designed to stay pegged to a fiat currency. However, this stability was recently challenged when the decentralized stablecoin Terra (UST) lost its peg to the US dollar. This event caused a lot of chaos in the crypto community.
MoneyGram announced the project when people questioned crypto-assets seeking to maintain their peg with fiat currencies.
Cryptocurrencies have been uncertain for a while, but Holmes still believes in their future.
Cryptocurrency “is obviously here to stay and it’s going to be here for a long time despite recent selloffs and volatility. I think adopting it, bringing it into the mainstream is important.
The move is part of efforts from this year’s expansion plans that were revealed back in February, where Holmes announced;
We’re also going to be doing a lot more in digital assets and crypto and blockchain over the next several years, and some people are favorable on that, and some people aren’t.
In 2019, MoneyGram signed a partnership with Ripple to use its product for cross-border payment and foreign exchange settlement. But, after the US Securities and Exchange Commission (SEC) filed a complaint against it, the money transfer company ended its partnership with Ripple.
Featured image from Flickr, and the price chart from Tradingview.com