Converting crypto to cash: MoneyGram’s play to become the world’s on and off ramp
Converting cryptocurrencies into cash can be an expensive and potentially time consuming process, and while there are a variety of digital solutions, there are few options that allow people around the world to turn their crypto holdings into hard fiat currency. However, remittance major MoneyGram has been taking on the challenge as part of a growing partnership with blockchain player the Stellar Development Foundation.
First announced in October 2021 but expanded in June 2022, the service enables cryptocurrencies to be purchased using cash or crypto to be converted back into fiat cash at MoneyGram locations, using the Stellar blockchain and Circle’s stablecoin USDC. Through this, customers can send USDC to others as a form of remittance, before it being cashed out at a MoneyGram location, or use it as an on or off ramp for other cryptocurrencies such as bitcoin by converting their USDC.
Through the partnership, customers can exchange cash for USDC at MoneyGram locations in 15+ countries and exchange USDC for cash at 190+ countries.
As a result, it enables those in cash-based economies to access and utilise crypto without needing a bank account or credit card – something that was not previously available to them.
“For us, it’s really about how you help bridge fiat and crypto, and then also, how do we bring some utility to that space,” explains Alex Holmes, CEO of MoneyGram.
Looking forward, MoneyGram may at some point develop its own custodial wallet, although it would likely do so via partnerships in order to avoid exposing itself to increased regulatory challenges.
However, Alex believes MoneyGram’s project is increasing transparency in the crypto space, as the company provides the same KYC as it does with its standard remittance customers.
More broadly in the sector, it will be interesting to follow how other players with large distribution networks may also look to support the crypto segment and who may launch crypto products directly.
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Anders Olofsson – former Head of Payments Finastra
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
