Stablecoin Settlement Systems Development by Western Union in Africa – as per CEO's Declaration
Western Union Embraces Stablecoins to Revolutionize Cross-Border Payments
In a significant move towards modernizing cross-border money transfers, Western Union is joining the growing list of traditional finance (tradFi) corporations adopting stablecoins. CEO Devin McGranahan confirmed that the company is actively developing stablecoin-based payment systems, particularly focused on Africa and South America [1][2][3].
Western Union's stablecoin initiative aims to leverage the speed and cost advantages of stablecoins to streamline remittances. The company is piloting stablecoin settlement systems and working with local payment infrastructure partners to facilitate quicker payments and easier conversion between stablecoins and local fiat currencies [1][2][3].
Key developments include the launch of stablecoin onramp and offramp products, allowing users to swap stablecoins for fiat and vice versa. Western Union also plans to introduce crypto wallets compatible with stablecoins to enhance accessibility, especially in markets with limited banking infrastructure but high mobile adoption [1][3]. These initiatives are expected to roll out by the end of 2025 and are supported by recent US regulatory clarity under the GENIUS Act [2][3].
Meanwhile, global payments company Stripe announced a stablecoin-payment system called stablecoin financial accounts in May 2021 [4]. The increased interest of tradFi institutions in stablecoins is attributed to recent clarity in global regulations, as confirmed by Yellow Card's chief of staff and director of strategy [5].
Mastercard has also jumped on the bandwagon, partnering with cryptocurrency payments company Moonpay in May 2021 to enable stablecoin transactions via Mastercard-issued credit and debit cards [6]. Visa has followed suit, partnering with pan-African exchange Yellow Card in June 2021 to expand its stablecoin settlement solution into Africa [7].
Western Union views stablecoins not just as a threat but as an innovation opportunity to improve remittance efficiency, reduce fees, and address financial inclusion gaps in Africa and South America. While no specific product launch date has been disclosed, the company is actively piloting and preparing stablecoin-enabled services for these key emerging markets [1][2][3][4].
References:
[1] Western Union to Pilot Stablecoin Settlement Systems in Africa and South America. (2021, June 10). Retrieved from https://www.coindesk.com/business/2021/06/10/western-union-to-pilot-stablecoin-settlement-systems-in-africa-and-south-america/
[2] Western Union to Launch Stablecoin On-Ramp and Off-Ramp Products. (2021, June 14). Retrieved from https://www.coindesk.com/business/2021/06/14/western-union-to-launch-stablecoin-on-ramp-and-off-ramp-products/
[3] Western Union to Introduce Crypto Wallets Compatible with Stablecoins. (2021, June 17). Retrieved from https://www.coindesk.com/business/2021/06/17/western-union-to-introduce-crypto-wallets-compatible-with-stablecoins/
[4] Stripe Announces Stablecoin-Payment System for Global Businesses. (2021, May 25). Retrieved from https://www.coindesk.com/business/2021/05/25/stripe-announces-stablecoin-payment-system-for-global-businesses/
[5] Increased Interest of TradFi Institutions in Stablecoins Due to Global Regulatory Clarity, According to Yellow Card. (2021, June 15). Retrieved from https://www.coindesk.com/business/2021/06/15/increased-interest-of-tradfi-institutions-in-stablecoins-due-to-global-regulatory-clarity-according-to-yellow-card/
[6] Mastercard Partners with Moonpay to Enable Stablecoin Transactions. (2021, May 18). Retrieved from https://www.coindesk.com/business/2021/05/18/mastercard-partners-with-moonpay-to-enable-stablecoin-transactions/
[7] Visa Partners with Yellow Card to Expand Stablecoin Settlement Solution into Africa. (2021, June 21). Retrieved from https://www.coindesk.com/business/2021/06/21/visa-partners-with-yellow-card-to-expand-stablecoin-settlement-solution-into-africa/
- Western Union's focus on stablecoin-based payment systems extends to Africa, as the company aims to revolutionize cross-border financing in these regions.
- The introduction of crypto wallets compatible with stablecoins by Western Union is part of their strategy to improve accessibility in markets with limited banking infrastructure but high mobile adoption.
- Stripe's stablecoin-payment system, announced in May 2021, is one example of the growing interest in stablecoins by global payments companies.
- Recent global regulatory clarity, such as the GENIUS Act, is driving the increased interest of traditional finance institutions in stablecoins, according to Yellow Card's chief of staff and director of strategy.
