A partnership between MoneyGram and the Stellar Development Foundation (SDF) reveals future plans for a pilot program in the Stellar blockchain system. Both entries have decided to launch a live cash-in/cash-out pilot in the United States.
Users will be able to deposit into their accounts via physical MoneyGram locations and then proceed to send these payments anywhere in the world by means of Stellar’s USDC. Furthermore, the program will allow clients to exchange USDC for MoneyGram-supported fiats. It is expected that transfers will be almost instantaneous.
The Stellar Development Foundation commented that the growing popularity of cryptos, e-wallets, and financial services apps have been the main push for the joint operation. The Foundation continued, however, in support of physical cash saying that the “partnership embraces the reality that… cash isn’t going anywhere. Many markets across the world still run on cash, and these markets often serve large un- and under-banked populations,”
The services are expected to become available to the world sometime in 2022. For now, the pilot will be available to a selected few markets that will test it throughout the remainder of the year.
Back in May, we reported that Money Gram had partnered with Coinme – a popular BTC ATM firm that has gained a head start- in order to bring BTC services to more users, including those of MoneyGram itself. The tax for each transaction is 4% plus a flat fee of $2.15.