MoneyGram’s app will allow Colombian citizens to hold and transfer USDC, offering protection against peso depreciation.
MoneyGram announced the launch of its new digital payments app, which will give local residents the ability to save using the USDC stablecoin.
The app’s technology infrastructure is built on the Stellar network and integrated with Crossmint services to ensure self-custody of funds. This setup enables users to hold USDC and perform international transfers almost instantly.
According to MoneyGram, Colombia represents the “ideal launch market” for this service. Statistics show that Colombian households receive more than 22 times the amount of money from abroad compared to what they send.
This system eliminates the need for users to visit physical MoneyGram locations to withdraw cash. Physical branches will only be required when users want to convert USDC stablecoins into Colombian pesos for everyday expenses. The company also announced that users may soon have the option to earn incentives on deposits.
The app will be available on both the Apple App Store and Google Play Store. Initially, Colombian users will need to join a waiting list to have their accounts approved. This gradual rollout will allow MoneyGram to effectively manage user onboarding.
USDT’s dominance in Colombia
Despite MoneyGram’s USDC integration, USDT remains the dominant stablecoin in Colombia. José Luis García, an active member of a Bitcoin-focused Telegram group in Colombia, told Cointelegraph that Tether transfers still account for the majority of local activity, mainly through Binance’s peer-to-peer platform. Another widely used app in the country is El Dorado P2P, which facilitates USDT transfers on the Tron network.
