according to the materials of the site -
By The Crypto Times
It is reported that Western Union is considering launching its own stablecoin backed by the US dollar, as more and more cryptocurrency projects challenge its long-standing role in cross-border money transfers.
"We are exploring the possibility of issuing a stablecoin, especially in markets outside the US," said CEO Devin McGranahan in a recent interview. He noted that this could become "almost a savings account in US dollars" for customers in countries where it is allowed by local legislation.
This comes just a few weeks after the US government passed laws aimed at integrating stablecoins into the financial industry. For money transfer companies, this change is important, as many new projects promise to speed up and reduce the cost of sending money.
Currently, Western Union sends money through partner banks in different countries, and receiving money can take two to three days. McGranahan noted that with the help of a stablecoin, this process could be significantly accelerated and would allow avoiding traditional banking channels.
Moreover, competitors are already adopting this trend. For example, PayPal has already launched its own dollar-backed coin and added it to its Xoom money transfer service. Circle, the company behind USDC, is expanding its operations globally, making deals with banks and fintech companies.
MoneyGram now allows customers to send USDC and may soon start using stablecoins for internal operations. Remitly has launched a multi-currency wallet that supports both regular and digital currencies, and has partnered with Bridge, which was recently acquired by Stripe, to improve the use of stablecoins.
Meanwhile, Western Union's market value is under pressure: since January, its shares have fallen by about 27%.
Capstone analysts recently suggested that changes in the industry could make Western Union an attractive acquisition for a large cryptocurrency company, such as Circle, which went public in June. When asked about this idea, McGranahan responded: "If someone came and offered us a fair value that we think the company is worth, we would certainly consider that offer."
If the company really decides to do this, it may not develop the token alone. McGranahan reported that Western Union is negotiating with "most major players" in the cryptocurrency space about a possible partnership. The goal will be to provide remittance recipients the ability to hold money in a stable currency, such as US dollars, instead of exchanging it for local money that can quickly depreciate.
The CEO also noted that the stablecoin could help Western Union become a bridge between digital finance and traditional banking, providing people with the ability to move between these two worlds.
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