MoneyGram CEO candidly discusses Ripple’s role in cross-border payments and reveals the transition to Stellar (XLM) for enhanced payment efficiency in an exclusive interview.
In a candid interview with Fortune magazine, MoneyGram CEO Alex Holmes dives deep into cross-border payments, shedding light on Ripple’s intricate relationship and the hurdles they face in their adoption. He further discusses the company’s transition to Stellar (XLM) and its collaboration to enhance payment efficiency.
Holmes agrees that the traditional banking system, primarily intended for domestic payments and corporate transfers, is the main challenge that remittance providers must overcome. This challenge forced MoneyGram to look for additional ways to lower remittance expenses, ultimately leading them to consider cryptocurrency a viable remedy.
Although MoneyGram initially supported Ripple’s solution, which utilized XRP, there were issues when trying to convert the money into local currencies. The startup hoped to solve the problem that converting XRP required relationships with exchanges and market makers, increasing the cost of international transfers.
The Crypto Basic reported on the difficulties of switching from cryptocurrencies to fiat currencies in international payments, which finally caused the collaboration between Ripple and MoneyGram to dissolve after the U.S. SEC sued Ripple in 2021.
Moneygram’s Ripple Challenges Lead To Stellar (XLM) Collaboration
MoneyGram is still dedicated to developing creative solutions, notwithstanding the challenges that XRP is now facing. To make it easier to buy, store, and withdraw the stablecoin USDC, the firm has partnered with Stellar blockchain (XLM).
The agreement intends to meet the requirements of people living in inflation-stricken nations by enabling them to store USDC in digital wallets backed by Stellar and convert it into their national currency as needed.
While the benefits of keeping USDC versus conventional U.S. dollars are still being actively researched, possible fee savings are a crucial factor. By utilizing these benefits, MoneyGram hopes to increase the effectiveness of its cross-border payments and provide a better service to its clients.
The interview with Holmes highlights the continuous efforts of remittance firms, including MoneyGram, to negotiate the shifting crypto market. Although integrating digital assets like XRP caused difficulties, the firm is constantly looking for methods to use other cryptocurrencies, including Stellar’s XLM, to increase the effectiveness of cross-border payments and give its customers better services.