As per reports from Bloomberg, MoneyGram is planning to collaborate with Stellar Development Foundation to provide its customers with a facility that will enable them to transmit and convert stablecoins into fiat money effortlessly. With the service, the users from the Stellar network will be capable to convert their cryptocurrencies like USDC into fiat money like USD. After that, Stellar network users may withdraw the stablecoin using the MoneyGram network.
Why was partnership needed?
Recently, MoneyGram CEO Alex Holmes was discussing cryptocurrency and other things with its future in a Bloomberg interview. In the interview, he remarked that the cryptocurrency and fiat worlds are now inconsistent. He further stated his plan to overcome the issue by launching a solution that fits solving the problem of both worlds.
MoneyGram and its userbase
MoneyGram is a USA based global payments and money transfer corporation headquartered in Dallas, Texas. Moneygram offers money orders, money transfers, bill payments, prepaid card reloading, and mobile top-up services to customers who even do not have a bank account.
According to the World Bank, remittances from low- and middle-income nations might reach $630 billion by 2022. MoneyGram’s service stands to benefit greatly from the company’s fast development.
How the partnership helps each other?
Despite a recent crypto market drop, Holmes believes that the emerging business (the crypto industry) is here to stay. In this direction, he feels it is critical to embrace the industry and contribute to its mainstreaming. MoneyGram positions itself advantageously to aid in the acceptance of cryptocurrencies by cooperating with the Stellar Development Foundation. The collaboration might potentially help increase acceptance even further in emerging nations where Moneygram operates.
On the collaboration news, Denelle Dixon, CEO of Stellar, informed the followings:
“There are billions of cash-dependent people throughout the world who may get benefit from digital assets and blockchain. The solution is what we’re creating through our collaboration: a service to assist people in transitioning from cash to digital assets.”
To improve their services, traditional remittance providers are increasingly turning to crypto and blockchain technology.
About Stellar Network
In simple words, Stellar is an open-source currency and payment network. Stellar allows users to create, transfer, and exchange virtual versions of any currency fiat currency or any digital currency like dollars, pesos, bitcoin, and so on. It is intended for all of the world’s financial systems to collaborate on a single network. Stellar uses blockchain to keep the network synchronised. Stellar is significantly quicker, cheaper, and more energy-efficient than normal blockchain-based systems.
The Stellar Development Foundation (SDF), a non-profit organisation, was established in 2014 to aid in the development and expansion of the open-source Stellar network. Stellar is an open-source decentralised system for converting digital currency to fiat money both locally and beyond borders. By making money more fluid, markets more open, and individuals more empowered, SDF and Stellar want to unlock the world’s economic potential.
