MoneyGram CEO Alex Holmes recently spoke with Fortune magazine on the problems and potential associated with the use of cryptocurrency. He noted the difficulties that could arise if cryptocurrency is employed in cross-border payments. When it comes to accessing the traditional banking system, companies like MoneyGram confront challenges. This is due to the fact that it is primarily intended for domestic payments and business transfers.
MoneyGram recognized the potential of cryptocurrency as a cost-cutting alternative and implemented a buy-and-sell feature into its mobile app. However, the CEO stated that most people simply do not want to own cryptocurrency. This is because they find it inconvenient to have to convert crypto payments into traditional currency after receiving them.
MoneyGram first tried out Ripple’s XRP solution but encountered issues with converting XRP into local currency. This is due to the fact that the process was inconvenient and just increased the expense of international money transfers. This underscores the challenges that older businesses confront when adopting modern blockchain technology. It also demonstrates that, after all, converting crypto is not so simple for new users who simply wish to use standard currency instead.
NEWS: 🚨 MoneyGram CEO discusses use of XRP for cross-border payments.
— Walletor (@walletorapp) June 21, 2023
Despite these challenges, MoneyGram continues to seek novel solutions. The company has partnered with Stellar blockchain (XLM) to make the stablecoin USDC purchasing, storage, and withdrawal easier. This collaboration strives to meet the requirements of persons in inflation-affected countries. People in some parts of the world can escape inflation by storing stablecoins in their digital wallets.
MoneyGram’s activities mirror the continuing investigation of cryptocurrency remittance businesses. The adoption of digital assets such as XRP brings unique problems. Nonetheless, the organization is continually looking for ways to improve payment efficiency by utilizing other cryptocurrencies.
Conclusion
It is vital to highlight that users’ preference for fiat cash remains strong, and MoneyGram recognizes this demand. The corporation is currently looking for ways to use cryptocurrency to its advantage. Their work with Stellar is a prime illustration of this.
Finally, MoneyGram’s CEO discusses the obstacles and potential that cryptocurrencies provide in cross-border transfers. While the move from cryptocurrency to fiat currencies is complicated, MoneyGram is open to new ideas. The company attempts to make international payments more efficient.
