As the world rapidly embraces digital transformation, blockchain technology and cryptocurrencies are gaining significant traction in the realm of global remittance.
According to Luther Maday, Head of Fintech Strategy and Innovation at MoneyGram, the journey to mainstream adoption is challenged by one critical aspect: real-world applicability.
MoneyGram has been closely monitoring the cryptocurrency space and acknowledges the increasing number of entities utilizing these innovative technologies for cross-border transactions.
However, achieving the “last mile” for mass adoption is crucial for seamless transfer and everyday purchases, such as a loaf of bread.
Blockchain technology excels in two key areas: speed and settlement. Settlements are executed instantly, unlike traditional global financial transactions, which take several days. The inherent transparency of blockchain provides a mechanism for tracing and tracking transactions, identifying both senders and receivers.
Addressing the potential impact of negative news cycles on cryptocurrency remittances and adoption, Maday acknowledged that they likely have “some effect.” However, he also emphasized that positive outcomes could emerge from these challenges.
MoneyGram firmly believes that “blockchain is here to stay,” and regulation will inevitably follow, though its exact form remains uncertain. The company stresses the importance of regulation and protection in the crypto space, acknowledging that all parties involved are still learning.
From a remittance perspective, MoneyGram is trying to follow use cases around stablecoins and central bank digital currencies (CBDCs), such as USDC and its partners Circle and the Stellar network. The company’s project allows individuals without bank accounts to tap into the industry.
MoneyGram has witnessed a “great adoption” of USDC in Latin America, where it serves as a hedge against inflation. Despite geographical differences, the technology itself knows no boundaries, and MoneyGram’s experience has revealed a correlation between countries with high inflation rates and their interest in alternative assets like USDC.
