- GENIUS Act pushes Western Union closer to stablecoin payment services.
- Western Union eyes on-ramp partners for stablecoin cash conversions globally.
- Stablecoin settlement trials launched in Africa, South America for remittances.
Western Union, one of the biggest names in global money transfers, is now preparing to move deeper into the world of stablecoins. This comes just after the recent approval of the GENIUS Act in the United States. On Monday, Devin McGranahan, the CEO of Western Union, talked to Bloomberg about this significant step.
Western Union Eyes Easier Stablecoin Transfers with New Partner Services
McGranahan stated that the firm would like to make purchasing and selling stablecoins with the help of services from Western Union easier. This implies that the company is considering on-ramp and off-ramp partnership services. These services will assist the customers to transfer funds between their stablecoins and ordinary money.
Special types of cryptocurrencies are stablecoins. Unlike other crypto, they are not different since they are pegged to stable assets such as the U.S. dollar. This causes them to be less risky and less volatile. According to numerous specialists, stablecoins will make the process of money transfer more hastened and economical.
Even though it should be noted that this is not the first time that Western Union is looking at crypto. In October 2022, the firm applied for three crypto-related trademarks. Western Union had even previously, in 2015, begun collaborating with Ripple to experiment on how blockchain could facilitate cross-border payments. However, such a collaboration remains on the test level over several years. In 2018, Western Union stated it is not going to introduce crypto transfers to its core services yet.
GENIUS Act has transformed the situation of stablecoins in the United States. The legislation, which is signed by the former President Donald Trump, establishes a clear position of stablecoin issuers. A good example is the fact that all the stablecoins issued have to be fully backed by dollars or other liquid assets. In addition, the companies whose assets in stablecoins exceed 50 billion dollars are also required to undergo annual audits. The Act also provides the manner in which foreign companies ought to deal with stablecoin matters within the U.S.
New Rules Drive Old Finance to Embrace Digital Currency Future
The new law has cleared much of the confusion for major companies like Western Union. The passing of the GENIUS Act indicated a clear Washington approval of stablecoins as an element of the larger financial system. Such a decisive position is making more companies consider stablecoin opportunities with a lot more confidence.
Due to this reason, Western Union is currently trying to test stablecoin settlements in Africa and South America. These areas are usually characterized by high remittance charges and unstable domestic currencies. Western Union might use stablecoins to make people transfer money quicker and more cheaply.
This is also a move to remain ahead. The finance world is shifting rapidly. The old companies are being forced to improve their service delivery to their customers due to the new technology and digital currencies. Western Union is aware that it has to maintain pace. McGranahan claimed that the company desires to provide more options and improved transaction speeds to the millions of individuals in the world.
By fully adopting the stablecoins, individuals will be able to transfer or receive money in more methods, particularly in unstable money systems of countries. This would greatly put the company at an advantage over other companies.
In short, the GENIUS Act has exposed big corporations such as Western Union to consider stablecoins with seriousness. Its Africa and South American tests demonstrate that the company is keen to be fast. New partnerships and more transparent rules will help Western Union to influence the future of global payments one stablecoin at a time.
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