Colombians Embrace Stablecoins Amid Peso Decline and Lagging Banks

MoneyGram International Inc. has introduced a trial initiative that could let Colombian customers keep their money in USDC, a U.S. dollar-backed stablecoin, as the Colombian peso continues to lose value against the dollar. The ongoing pilot aims to offer a steadier alternative for users in a market increasingly looking toward dollarization, especially as the local currency remains unstable.

Over the past half year, the peso has declined by almost 12% compared to the U.S. dollar, driving more people to seek digital alternatives over conventional banking options. Statistics from the Colombian Superintendence of

Although USDC is not yet directly accessible on the MoneyGram app, the company has stated it is actively pursuing collaborations with local banks and financial entities to eventually allow users to hold USDC for their transactions. This effort is part of a wider plan to enhance the capabilities of its digital wallet and cater to those wanting to shield their savings from inflation and devaluation.

Even as MoneyGram explores USDC integration, USDT maintains its lead in Colombia, accounting for more than 70% of all stablecoin-related transactions. Industry experts attribute USDT’s market share to its broad acceptance, user-friendly features, and lower transaction fees when compared to other stablecoins.

Observers highlight that MoneyGram’s move reflects the increasing adoption of digital assets in emerging economies, where standard banking is often hindered by regulation and high costs. However, Colombia’s regulatory authorities, including the central bank, are still treating the rise of stablecoins with caution, keeping a close eye to ensure adherence to anti-money laundering rules and financial stability.

Should the pilot prove effective, MoneyGram may extend this functionality to a wider user base, which could significantly impact how Colombians approach international remittances and personal savings. For now, most users still depend on traditional money transfer services and digital alternatives such as USDT to protect themselves from currency volatility.