Colombians Turn to Dollar-Pegged Stablecoin App to Offset Peso Fluctuations
MoneyGram has introduced a new mobile app in Colombia, giving users the ability to hold and use stablecoins that are tied to the US dollar. Developed on the Stellar blockchain with support from wallet provider Crossmint, the app lets individuals receive instant payments into a US dollar account backed by Circle’s USDC. Funds in this account can be kept, spent, or withdrawn as cash through MoneyGram’s extensive worldwide locations. This initiative is designed to offer a more secure option for remittances and help counteract the instability of local currencies such as the Colombian peso.
The app specifically tackles the problem of declining local currencies in developing regions. Colombia, which is a major hub for incoming remittances, has seen its peso drop by more than 40% against the US dollar over the last four years. With families in Colombia receiving remittances much more than they send out, having a dollar-based account has become crucial for protecting their wealth. After its initial launch in Colombia, the app is expected to roll out to other countries with high remittance traffic.
Since teaming up with the Stellar Development Foundation in 2021, MoneyGram has gained substantial experience in integrating blockchain technology. The company has since built cash in-and-out solutions for stablecoins, APIs for cryptocurrency services, and incorporated stablecoins into their internal settlements. Utilizing its nearly 500,000 physical locations worldwide, MoneyGram is working to make stablecoins a practical tool for daily financial use.
CEO Anthony Soohoo highlighted that this rollout moves the company closer to enabling universal access to dollar-based stablecoins. He also pointed to MoneyGram’s long-standing expertise in regulatory compliance as a major asset in adapting to new rules around stablecoins. The recent passage of the GENIUS Act by the US Congress—which sets clear guidelines for stablecoin regulation—was mentioned by MoneyGram as providing better operational clarity for its business.
The addition of stablecoins to mainstream consumer financial products represents a major evolution in how
This development fits into larger trends in the cryptocurrency sector, where stablecoins are increasingly being used for practical, everyday transactions instead of just speculation. MoneyGram’s commitment to stability and financial inclusion enables it to meet the demands of users in markets with unstable economies. By offering a secure, regulated stablecoin solution, MoneyGram sets an example for other financial organizations looking to integrate digital assets into their offerings.
