MoneyGram is rolling out a crypto app in Colombia, letting users store and transfer USDC as the peso weakens, offering stability and speed.

MoneyGram launches USDC app in Colombia as peso weakens

Colombians will soon be able to receive and store the dollar-backed stablecoin USDC directly through MoneyGram’s new crypto app. The company announced that the service will be available on the App Store and Google Play in the near future, and the first users can already get in line for verification.

Why Colombia

MoneyGram called the country “an ideal launch market,” as locals receive 22 times more money from abroad than they send themselves. The new app will allow users to avoid trips to physical pick-up points: users will be able to receive transfers immediately in USDC, store them in their wallets and quickly send them abroad.

A Bet on Stability

The choice of a stablecoin is explained by the fall of the peso – the currency has lost almost 12% against the dollar since April. By storing funds in USDC, users get a more stable tool for savings. Cash in pesos can be withdrawn only when the need for spending arises. MoneyGram also hinted that in the future it will add tools for earning interest on deposits.

Competition in the market

Despite MoneyGram’s entry into the digital segment, Tether (USDT) still remains the main stablecoin in the country. According to a member of the local bitcoin community, José Luis Garcia, most users choose USDT on the Binance exchange via the P2P platform or in the El Dorado application. Demand is explained by fast and cheap transactions on the Tron network, where the volume of USDT exceeded $80 billion back in the summer.

Bitcoin Interest Declines

In contrast, the number of businesses accepting Bitcoin in Colombia has nearly halved, from 106 in September 2023 to 62 now, according to BTCMaps. Among the most high-profile examples is the closure of MIND Crypto Caffe Medellín in the tourist district of El Poblado.