Western Union explores introducing its own stablecoin for global remittances

Western Union could soon have its own stablecoin, CEO Devin McGranahan recently revealed. The goal is to launch a dollar-pegged token for the US market, expanding its service portfolio and becoming the first major global remittance provider to have its own stablecoin.

With this initiative, the bank seeks to modernize its operations and respond to growing” competition in the digital payments sector,” McGranahan said, as part of “Western Union’s strategy to offer faster and cheaper international remittances, taking advantage of the technological advantages offered by fiat-pegged cryptocurrencies.”

The executive explained that the stablecoin would be like a US dollar savings account for clients in other countries. This would help “reduce transaction costs and streamline cross-border settlements, a segment where fintech companies and stablecoin issuers are already gaining ground.”

All of this effort is part of the industry’s security measures and compliance with government regulations. Western Union would likely partner with a company in the cryptocurrency industry to launch the stablecoin.

M.Pino

Source: diariobitcoin

(Reference image source: appshunter.io on Unsplash)

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