Western Union is exploring stablecoins as a strategic response to competition in the global remittance market. CEO Devin McGranahan highlighted opportunities in faster cross-border payments, enhanced fiat conversion in challenging markets, and providing a store-of-value for customers in countries with weaker currencies. The firm's interest coincides with improved regulatory clarity following the signing of the GENIUS Act, designed to regulate stablecoin issuance and trading in the U.S. Currently, Western Union is piloting new settlement processes in regions like South America and Africa while seeking partnerships for crypto on- and off-ramps. Analysts note that stablecoins can significantly reduce remittance costs, which often exceed 6%, by eliminating intermediaries. Regulatory frameworks are expected to accelerate adoption among financial institutions, with expectations for widespread use by 2026. However, skepticism persists, particularly concerning potential risks associated with private currencies as highlighted by Senator Elizabeth Warren, indicating a need for careful regulation.

Source šŸ”—