MoneyGram is preparing to roll out its digital payments app in Colombia, giving locals the option to save money in U.S. dollar stablecoins as the peso keeps losing value.
The service, built on the Stellar blockchain and supported by Crossmint, will let users hold USDC in self-custody wallets and send it abroad almost instantly.
In its announcement on Wednesday, MoneyGram described Colombia as the “ideal launch market,” noting that Colombian households receive over 22 times more money from overseas than they send out.
“For millions of people around the world, sending money across borders is a lifeline: supporting loved ones back home, covering essentials like food, housing and education, and enabling investments in businesses and long-term financial stability. ”
MoneyGram
MoneyGram Launches Digital Payments App in Colombia
With the new app, Colombians no longer need to visit MoneyGram’s branches to collect transfers in cash, as they can now hold the funds in USDC directly within the app. This gives them access to a more stable currency, as the peso has dropped nearly 12% against the U.S. dollar since early April, according to Google Finance.
Users will only need to visit MoneyGram locations when they wish to convert USDC into Colombian pesos and withdraw them for spending.
The company also said that customers may soon be able to earn incentives on deposits through its savings features.
MoneyGram’s crypto service is available on the Apple App Store and Google Play Store, but Colombians must first join a waitlist to have their accounts approved.
As a competitor to Western Union, MoneyGram operates 500,000 retail locations worldwide and says it has more than 5 billion “digital endpoints,” making it one of the most widely accessible digital payment networks globally.
El Dorado P2P is another popular app in Colombia that lets users send and receive USDT on the Tron network, Garcia said.
In June, the supply of USDT on Tron crossed $80 billion, with its quick and low-cost transactions making it a favored choice for transferring digital dollars in developing nations.
