MoneyGram App to Launch in Colombia For Stablecoin Savings

MoneyGram Expands Crypto Services to Colombia with Stablecoin App

MoneyGram is launching its digital payments app in Colombia, providing a solution for residents seeking stability in the face of a weakening Colombian peso. The app will allow users to save and transfer funds using US dollar stablecoins.

Stablecoin Transfers via Stellar Network

The crypto service is powered by the Stellar network and utilizes Crossmint for self-custody. This enables users to securely store the USDC stablecoin and conduct near-instant international transfers.

Strategic Launch Market

MoneyGram highlighted Colombia as an “ideal launch market,” noting that families in Colombia receive significantly more money from abroad than they send. This new app eliminates the need to visit physical MoneyGram locations, allowing users to hold funds as USDC directly within the app.

Combating Peso Volatility

Since early April, the Colombian peso has depreciated nearly 12% against the dollar. By offering USDC savings, MoneyGram provides a more stable alternative for storing funds.

Future Incentives

While users will still need to visit MoneyGram locations to convert USDC to Colombian pesos for spending, the company anticipates offering deposit incentives through integrated savings options in the future.

Availability and Access

The MoneyGram app will be available on both the Apple App Store and Google Play Store. However, prospective users in Colombia will initially need to join a waitlist for account approval.

Competition and Market Dynamics

Despite MoneyGram's entry, USDT (Tether) remains the dominant stablecoin in Colombia, particularly for peer-to-peer transactions on platforms like Binance. El Dorado P2P is another popular app for USDT transfers on the Tron network.

Bitcoin Merchant Decline

Interestingly, data from BTCMaps reveals a decline in the number of merchants accepting Bitcoin in Colombia. The number has fallen from 106 in September 2023 to 62 currently.