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In mid-September, stablecoins received a fresh injection of legitimacy when payments specialist MoneyGram introduced a new Visa-branded debit card backed by one. The product is somewhat unimaginatively called the MoneyGram Card, underpinned by the USDC (CRYPTO: USDC) stablecoin. In turn, Circle Internet Group (NYSE: CRCL) develops and manages the coin.
I believe this is a positive development not only for USDC and the company that co-developed and manages it but also for the wider stablecoin ecosystem. Here’s why.
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In the cards
MoneyGram is the ideal company to offer such a card, as its bread and butter is remittances (i.e., cross-border payments, usually from people in economically advantaged countries to associates in less prosperous ones).
One of the great promises of cryptocurrencies is that transacting in them can be almost instantaneous and near-frictionless, anywhere in the world. So they’re very suitable for remittances, as the facilitator behind them has less contact with challenges such as sharp exchange-rate moves, slow transaction settlement times, and other impediments to money transfers.
Aside from the innovation of the cardholder funding the card with USDC, its functions match those of a traditional debit card. Once the stablecoin is loaded onto what’s still only a digital product, payments can be sent anywhere MoneyGram operates, and the funds can be picked up in local currency. Users sign up for the card in MoneyGram’s mobile app and can manage all functions once it’s active.
The company promises a smooth experience with the card, but a lot is going on under the hood to fuse traditional payments with modern stablecoin infrastructure. The MoneyGram Card is managed in partnership with the transaction facilitator Rain, the crypto wallet specialist Crossmint, and the blockchain operator Stellar.
In its press release introducing the card, MoneyGram quoted CEO Anthony Soohoo as saying that it “builds on the power of our global payments network, bringing a stable-dollar balance, everyday spending and cash access into the MoneyGram experience customers already use and trust.”
Real-world application
One of the great concerns investors have had over the years with cryptocurrencies is utility; I can walk into my corner store and buy a carton of milk with my debit card or a few dollar bills. In most cases, I can’t do that with <a href="https://xpertsstudio.com/bitcoin-holds-76k-post/” title=”Bitcoin Holds $76K Post”>Bitcoin, Ethereum, or Dogecoin. And, as someone who doesn’t have a MoneyGram Card, I’d also struggle to figure out how to use USDC for the purpose.
Source: finance.yahoo.com