Localizing crypto was always the path to mass consumer adoption. Decentralized projects never really got around to capitalizing on the opportunities that existed in these markets and now, thanks to clearer crypto regulations, existing payments giants are moving to capture significant market share.
Colombia may be a country with a little over 52 million people, according to accessible census data of 2024, but MoneyGram has a market reach that counts into billions. However, from a business standpoint, we are still looking at a pretty smart business move with this one, as offering Colombians crypto savings and stablecoins payments solutions is solving a crucial problem due to inflation in the country and remittance flow.
MoneyGram’s digital payments app is set to launch in Colombia, offering locals a way to save in US dollar stablecoins as the Colombian peso continues to weaken.
MoneyGram’s crypto service is powered by the Stellar network and leverages Crossmint for self-custody, enabling users to store the USDC stablecoin and transfer it overseas nearly instantly.
In a statement on Wednesday, MoneyGram said Colombia is the “ideal launch market” as Colombian families receive more than 22 times the money they send abroad.
The Western Union competitor has 500,000 retail locations around the world, and claims to have more than 5 billion “digital endpoints,” making it one of the most accessible digital payment networks in the world. – Cointelegraph report
Traditional payments methods are costly and slow, stablecoins solve this.
When you take a system that is cost effective and fast and introduce the incentives of savings accounts to a market facing significant inflation turmoils, you earn high usage.
Stablecoins payments and savings solutions are made for markets like Colombia as citizens actively seek stability and a flexible way to move money across borders.
Like many traditional payments companies, MoneyGram can easily onboard it's existing consumer base and scale up with new business strategies. For the cryptocurrency ecosystem, this development brings us closer to achieving mass adoption.