After the failure of its collaboration with Ripple and its successful partnership with Coinme, MoneyGram continues its epic journey into the world of blockchain with this time a collaboration with the opensource decentralized protocol Stellar. The goal? To offer simplified access to stablecoins.
Circle’s USDC stablecoin, the big winner
MoneyGram and Stellar share a common goal of making transactions more sustainable and promoting the use of cryptocurrencies. Thus their collaboration, which dates back to October 2021, will provide users with a platform to transfer digital assets in USDC stablecoin.
This will allow their respective customers to use this new collaborative service. Holders of Stellars Lumens (XLM), the protocol’s native cryptocurrency, will be able to convert them into stablecoin USDC and send them via this new service from MoneyGram. The latter acts as an intermediary between the stablecoin replicating the U.S. dollar (USD) exchange rate and the many possible fiat currencies, with MoneyGram performing money transfers in over 200 countries.
Despite the Luna crash, stablecoins are still going strong
Since the collapse of Terra’s algorithmic stablecoin, the TerraUSD, stablecoins backed by a reserve currency are making a comeback.
Alex Holmes, the CEO of MoneyGram being an advocate of cryptocurrencies that he sees as the future, is not shy about highlighting his partner Coinme.
Yet, when asked on CNN what he would choose between the dollar, gold and bitcoin, his answer is the Dollar. A very corporate answer you will agree.
Just like Tether Limited with MXNT, which targets Latin America, MoneyGram with this partnership displays its own ambitions to conquer the world. Stablecoins, in addition to being tools to hedge against the volatility of cryptocurrencies continue to position themselves as true bridges between them and fiat cryptocurrencies.
Despite such a craze for stablecoins, a few questions remain: will the USDT ever be dethroned? If so, by whom? How will regulation react to this unbridled interest in stablecoins? So many questions that Coinpri will try to answer. In any case, one thing is sure, the fight between CBDCs and stablecoins will be a major issue in the coming years.
Co-founder of Coinpri, Expert in blockchain and NFT, I vulgarize the new web3 and blockchain paradigm here.
