MoneyGram International and Stellar blockchain have come together to allow its users to send UDC stablecoin and turn them into fiat currency
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MoneyGram International Inc., one of the largest money-transfer services in the United States, is getting ready to launch a service in collaboration with the Stellar blockchain that will allow its users to send stablecoins and easily convert them to fiat currency using MoneyGram's network.
Alex Holmes, the CEO of MoneyGram, believes that the cryptocurrency sector is here to stay and grow despite all the recent slump and volatility. He said, “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.â€
When the service becomes fully operational, users with Stellar blockchain digital wallets will be able to convert their holdings into Circle internet financial's USDC stablecoin. While the company already provides clients with Bitcoin services, it is now looking to extend its services to stablecoins.
The collaboration will enable users to conduct USDC remittances. The move comes amidst crypto remittances becoming more popular in emerging markets and, conversely, stablecoins (digital assets designed to maintain a one-to-one relationship with a fiat currency such as the US dollar) facing increased scrutiny post the Terra-UST debacle.
The crash of Terra's algorithmic stablecoin TerraUSD and its sister token LUNA earlier in May triggered a larger cryptocurrency market meltdown. The loss of USDT's peg to the dollar, and the ensuing death spiral (it fell 97 percent to near zero), eroded trust in stablecoins in general. Despite the recent 'selloff and volatility,' MoneyGram's CEO is optimistic about the company's future. He predicted that it would remain a key feature of the financial network for a long time.