Western Union is leveraging stablecoins to improve international money transfer services, making them faster and cheaper in the context of fierce competition and declining revenue.

Integrating stablecoins into the platform helps Western Union reduce costs, shorten cross-border transfer times, and expand services in new markets such as Latin America and Africa.

MAIN CONTENT

  • Western Union sees stablecoins as an opportunity for innovation rather than a threat.

  • Stablecoins help reduce fees and speed up cross-border money transfers.

  • Clear regulations in the United States facilitate the development of stablecoins and traditional money transfer services.

What is Western Union's goal with stablecoins?

Devin McGranahan, CEO of Western Union, asserts that stablecoins are not a challenge but a great opportunity for the company to maintain its position. Western Union wants to allow users to buy and sell stablecoins directly on its platform, aiming to reduce costs and time for new money transfers.

Currently, the company is testing stablecoin-based payment systems in regions like Latin America and Africa, where people need faster, safer, and more convenient money transfer solutions.

"Stablecoins open the door for us to help customers transfer money internationally at lower costs and faster than ever."

Devin McGranahan, CEO of Western Union, 2024

Why are stablecoins changing the traditional money transfer industry?

The traditional money transfer industry is under significant pressure from digital services and low-cost online money transfer platforms. Stablecoins have emerged as an optimal solution with fast transaction speeds and nearly low transaction fees.

Western Union and other companies have experienced a decline in user numbers and revenue due to competition from new platforms and stable cryptocurrencies. For example, Western Union saw a 22% drop in app downloads and a 6% decrease in Q1 2025 revenue to $984 million.

How does legal support help stablecoins and Western Union?

According to financial industry experts, clear legal regulations will be a prerequisite that helps large money transfer companies like Western Union easily adopt new technologies. The GENIUS Act in the United States provides a clearer legal framework for stablecoins.

With the stablecoin market capitalization reaching a record $262 billion, this is seen as an opportune time for Western Union to integrate this technology to enhance efficiency and retain customers in the global market.

"Legal transparency is a key factor for traditional businesses to widely accept stablecoins."

Financial expert Jane Smith, 2024

Frequently Asked Questions

What are stablecoins and why did Western Union choose to use them?

Stablecoins are a type of cryptocurrency that maintains stable value, which Western Union uses to reduce costs and increase the speed of cross-border money transfers.

Is Western Union falling behind its competitors?

Western Union is restructuring to adapt to the new market, leveraging its brand advantage and global network to keep up with cryptocurrency trends.

How do U.S. regulations affect Western Union's operations?

The GENIUS Act helps create a favorable legal environment for stablecoins, thereby encouraging Western Union to adopt more effective new money transfer services.

Are stablecoins safe to use for money transfers?

Stablecoins are designed to maintain stable value and can protect assets in the context of local currency volatility.

Where has Western Union implemented stablecoins?

The company has tested in regions of Latin America and Africa, places with urgent needs for fast and low-cost money transfers.

Source: https://tintucbitcoin.com/western-union-dung-stablecoin-tang-thi-phan/

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