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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 (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.
“For millions of people around the world, sending money across borders is a lifeline: supporting loved ones back home, covering essentials like food, housing and education, and enabling investments in businesses and long-term financial stability. ”Say hello to a new way to receive money 💸📲
Introducing the next-generation MoneyGram® app:
🔔 Instantly receive international transfers with real-time notifications
💲 Choose to convert funds into digital dollars for stability, or withdraw cash at a MoneyGram location
🔒… pic.twitter.com/E0CIn5QTup
The integration will save locals the need to go into MoneyGram’s physical stores to receive funds and pick up the physical cash, as they can now store it as USDC in the app.
This offers them a more stable currency to store their funds, as Colombian pesos have fallen nearly 12% against the dollar since early April, Google Finance data shows.
Users will only need to attend MoneyGram locations when they want to swap the USDC for Colombian pesos and withdraw them for spending.
MoneyGram also noted that users may be able to earn incentives on deposits through its integrated savings offerings in the near future.
MoneyGram’s crypto service is launching on the Apple App Store and Google Play Store, though Colombians must first join a waitlist to have their accounts approved.
Related: Bitwise files for stablecoin, tokenization ETF with US SEC
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.
USDT still stablecoin king in Colombia, local says
A member of a Colombian Bitcoin Telegram group, José Luis Garcia, told Cointelegraph that Tether (USDT) transfers still dominate local crypto activity, particularly via crypto exchange Binance’s peer-to-peer platform.
Source: Binance LatinoaméricaEl Dorado P2P is another commonly used app in Colombia that allows users to transfer USDT on Tron, Garcia noted.
The USDT supply on the Tron network surpassed $80 billion in June, with its fast, low-cost transfers making it an ideal option for sending digital dollars in developing countries.
Number of Bitcoin merchants has fallen in Colombia
BTCMaps data shows that the number of merchants accepting Bitcoin in Colombia has dropped to 62, down from 106 in September 2023.
Among the most notable departures was MIND Crypto Caffe Medellín, previously located in the heart of El Poblado, Medellín’s most touristy neighborhood. Photos from May 2024 on X show the space being dismantled.
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