The collaboration has already been announced during the first negotiations between Stellar and MoneyGram. Now we have additional confirmation coming directly from the CEO of MoneyGram, which remains one of the most important for the transfer of money, especially if it is transnational, on a global scale.
This would be an additional step that would allow all MoneyGram customers to use Stablecoin and convert them to fiat currency using the Stellar blockchain, which would deal a significant blow to Ripple.
Stellar and MoneyGram together
The case is relatively simple to understand. On the one hand, indeed, we have one of the most important companies in the world for transferring money, on the other hand, the Stellar network, which can offer logistical and technological support for cryptocurrency transfer.
All complemented by the ability to convert them into cash and back on demand. At least that’s what MoneyGram CEO Alex Holmes confirmed to Bloomberg News in an interview. According to him, the world of crypto and fiat money are not yet fully compatible, and they would like to act as an intermediary to facilitate the transition from one world to the other for their customers.
Remittances that are typically transferred by migrants and sent to their home countries will be made in USDC, a stablecoin based on reserves rather than algorithmic-type mechanisms. This will be more than welcome, especially after the recent collapse of Terra Luna, which also has interesting legal implications when the Korean authorities summoned employees.
This is very good news and quite an interesting situation for Stellar, which in general is struggling with the excessive power of Ripple in this sector, in particular with the XRP coin, which has a great support from banks.
The importance of the news for Stellar?
This is great news because it is an additional partnership with a large group that will increase the volume of processing on its network. An important sign of strength, including trading, which could also affect the price of the token.
Let’s see how quickly the collaboration project between Stellar and Moneygram, which has already started with a pilot program and is adding updates to the collaboration today, will be developing.
The cryptocurrency world, despite the bearish market phase, is far from dead. We can see how cryptocurrency projects continue to evolve and explore new horizons.
