Because of their expanding market demand, Alex Holmes, the CEO of conventional cross-border payments company MoneyGram, agreed that stablecoins are likely to be the future of payments.
In an interview with Bloomberg media, the executive stated that he believes stablecoins will become a key medium of exchange.
The overall quantity of stablecoins has grown steadily in the preceding year, which some market participants, such as Holmes and his MoneyGram, feel indicates a long-term route for increased success and innovation of current crypto-collateralized stablecoins.
As a result, MoneyGram announced on Sunday that it intends to expand the use of digital currencies. The prominent international money transfer services firm said that it is preparing to create a service that will allow customers to transmit stablecoins and convert them to actual cash through a collaboration with the Stellar blockchain.
According to Holmes, users with digital wallets on the Stellar blockchain will be able to convert their holdings into USDC stablecoin, which may then be paid out over MoneyGram’s network once the service is fully implemented.
Stablecoins are digital currencies whose values are linked to conventional assets such as the US dollar or commodities. Their rising popularity has prompted central banks to consider digital versions of their national currencies throughout the world.
Stablecoins, on the other hand, which are meant to preserve a one-to-one connection with a commodity or currency like the US dollar, have recently come under fire. The collapse of the TerraUSD stablecoin earlier this month cast a negative light on such digital currencies and sparked market volatility.
In the fourth quarter of last year, the two firms initiated a test project. This year, they want to progressively roll out a ledger-based stablecoin bridge between cryptocurrencies and local currencies to integrate MoneyGram’s 150 million consumers.
The revelation was a punch for Ripple, the cryptocurrency payments network whose long-standing partnership with MoneyGram ended in December 2020 when the Securities and Exchange Commission (SEC) launched a lawsuit against Ripple. According to the SEC, Ripple allegedly broke federal securities laws by selling $1.3 billion in XRP in the past.