MoneyGram CEO Doubts Crypto-Fiat Compatibility

MoneyGram International Inc. will be launching a service in partnership with Stellar Blockchain to expand its adoption of digital currencies.

One of the largest money-transfer services in the US is attempting to broaden the adoption of digital currencies https://t.co/FbzwH6HFu9

— Bloomberg Crypto (@crypto) May 30, 2022

In a Bloomberg report, MoneyGram CEO Alex Holmes admitted that “the world of crypto and the world of fiat are not really compatible today,” but assured that the firm is creating ways to adapt to both industries.

“We’re trying to be a bridge from the crypto world to the fiat world,” Holmes added and believed that this partnership could also help spread the use of crypto in emerging markets.

With the new service MoneyGram will be launching, users can easily send stablecoins and convert them to hard currency.Moreover, USDC stablecoin will serve as the platform’s means of cashing out for fiat currency.

“There are billions of cash-dependent people globally who can benefit from the utility that digital assets and blockchain provide,” Stellar Development Foundation CEO Danelle Dixon stated.

The answer is what we are building through this partnership – a service to help them move from cash to digital assets.

Some critics think there is still a risk that stablecoins might collapse too due to the recent TerraUSD (UST) and Terra (LUNA) crash. There is still high scrutiny after the losses amounted to nearly $24 billion of capital evaporating from the two tokens’ market capitals, all within 24 hours.

Meanwhile, Benzinga Editor Adrian Zmudzinski claimed that the USD Coin has a very different implementation and therefore will not fall in the same way as Terra, according to his analysis.

MoneyGram received acquisition interest from the Stellar Development Foundation, the nonprofit that manages the Stellar blockchain, and Advent International in July. The company announced the development of a crypto remittance service to be released in October.