MoneyGram is rolling out a new mobile app in Colombia that enables users to receive, hold, and transfer money using the USD-backed stablecoin USDC. The service, which utilizes the Stellar blockchain for settlement and Crossmint for wallet infrastructure, is designed as a hybrid solution: a stored-value USD balance that can be funded, received, and cashed out through MoneyGram's extensive network of over 6,000 retail locations in Colombia.
The launch, set to begin in Colombia before expanding regionally, targets users affected by the Colombian peso's significant depreciation, which has lost over 40% of its value in recent years and nearly 12% since early April 2024. The app promises near-instant receipt of funds in USDC, reducing delays associated with traditional remittances. Users are not required to handle private keys or pay gas fees directly, as the blockchain operations are abstracted behind the app interface.
Future features include debit card spending in USD and incentive programs for deposits, though these are not available at launch. Regulatory considerations, including KYC/AML rules and the evolving legal framework for stablecoins in Colombia, may influence transfer limits, reporting requirements, and fees. Specific fee structures for conversions between USDC and pesos were not detailed in initial announcements.