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In a recent interview with Bloomberg, Devin McGranahan, the CEO of the traditional cross-border money transfer company Western Union, expressed a forward-looking perspective on stablecoins. He views them as an opportunity rather than a threat to Western Union’s core business.
Western Union Moves To Embrace Stablecoins
McGranahan emphasized that both the company and its customers stand to gain from innovations that facilitate quicker and more affordable cross-border transactions.
He pointed out that while stablecoins might not currently be usable for everyday purchases, like buying a Coca-Cola, their conversion into fiat currencies—especially for those less readily convertible—presents a significant opportunity for Western Union.
McGranahan further revealed that the company is actively exploring ways to integrate stablecoin offerings into its digital wallets, collaborating with various partners to enhance its services for customers globally.
This comes amid progressive moves in the US’ regulatory system for digital assets with stablecoins gaining traction in the financial mainstream, particularly in light of recent legislative developments.
Notably, President Donald Trump signed the stablecoin-focused GENIUS Act into law last Friday, marking a historic moment for the broader crypto landscape, expected to contribute to increased adoption.
The country’s first crypto bill, spearheaded by the president and the Republican Party, is expected to provide a new supportive regulatory framework for dollar-pegged cryptocurrencies.
The industry also secured bipartisan support for the passage of the CLARITY Act and the Anti-CBDC bill in both the Senate and the House of Representatives.
The Future Of Reliable Global Transactions
The dialogue also touched on the impact of immigration policies on Western Union’s business. While McGranahan acknowledged some slowing due to the previous administration’s actions, he noted that approximately 60% of the company’s operations occur outside the US, where recent trends have been more favorable compared to domestic performance.
As stablecoins continue to evolve, many B2B and enterprise firms are reportedly considering how these new payment mechanisms could integrate into their operations.
According to reports, stablecoins were initially misunderstood as replacements for traditional payment methods like credit cards. However, their real utility lies in offering a stable, reliable currency for global transactions, especially in situations where local currencies may fluctuate or where cross-border transfers can take days.
The transition of stablecoins from speculative assets to federally recognized financial instruments marks a new era for businesses. This newfound trust allows companies to use digital dollars for various purposes, including paying contractors and settling trade balances internationally.
However, the irrevocability of transactions and the novelty of stablecoin technology could introduce challenges, creating a competitive landscape for businesses looking to leverage these digital assets for global payments, instant invoicing, or payroll.
Featured image from DALL-E, chart from TradingView.com
