Ripple has been pilloried by critics, who say it is not decentralized. Its recent price drops have led to a fall in its market cap and share prices for the company are also slumping. Moneygram’s announcement that it will partner with Stellar appears to be designed to show Ripple that other currencies can co-exist on the platform without cannibalizing each other
A collaboration arrangement was announced earlier this month, in which Stellar users will be able to visit Moneygram shops to swap USDC for cash and vice versa in person. Moneygram operates at more than 350,000 locations across 200 countries.
Denelle Dixon, Stellar’s Chief Executive Officer, described this as “significant” for the company since it “essentially links the blockchain and real worlds.”
“This is a significant deal for the Stellar network and the wallets that are part of it.”
Stellar has since announced the establishment of a pilot program in the United States to test this feature.
While much has been made about real-world bitcoin acceptance, if this relationship is expanded, it will represent a huge step forward in that regard.
Moneygram is experimenting with a Stellar pilot program.
Both Moneygram and Stellar have been working on interfaces to allow Stellar USDC cash funding and local currency payouts.
To test the arrangement, a U.S. pilot program for cash-in and cash-out transfers is currently live at selected Moneygram facilities. Users may also transfer money overseas and trade USDC for any cash currency supported by Moneygram, according to the company.
“By conducting a live cash-in and cash-out pilot in the United States, MoneyGram and SDF have achieved the first key milestone in their relationship. Participants in the pilot may now deposit cash into their digital wallets at MoneyGram outlets and transmit payments worldwide using Stellar USDC.”
Moneygram is a trailblazer in the financial services industry for being one of the first to identify and embrace blockchain technology.
The first was in 2019, when Ripple’s xRapid technology was deployed by Moneygram to settle cross-border payments. The SEC action, in which the US government claims Ripple offered unregistered securities in its XRP coin, eventually brought this to a halt.
What was the process of integrating Moneygram?
Anyone may use Stellar to build on the blockchain since it is an open-source network. To accomplish so, a variety of material and resources are accessible. Stellar recommends that those interested go to:
- SDKs that are mature and well-documented in a variety of programming languages.
- Stellar Ecosystem Protocols that are well-designed (SEPs).
- A multitude of APIs, tools, and documentation developed by SDF.
The company aggressively encourages developers to have a look at the Stellar blockchain and weigh the benefits of incorporating it.
In terms of expanding the trial program in the United States, Stellar claims a complete rollout will take place next year, with 11 more markets added to the system.
“At the service’s full debut in 2022, 11 markets will have cash-in capabilities before it expands to other places — keep tuned for further developments!”
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