MoneyGram allows its US customers to buy and sell Bitcoin (BTC) and other cryptocurrencies for fiats. It thus joins the list of companies providing payment services that have started their transition to new finance.
Another competitor for exchanges
MoneyGram announced in a press release dated April 12, 2021, its partnership with the operator of ATM cryptos Coinme Inc. Its US customers will be able to convert their cryptocurrencies for cash at its various points of sale at United States.
US customers of MoneyGram will also be able to buy BTC and other cryptos as part of the development of the current crypto-to-cash model, with around 20,000 cryptocurrency ATMs around the world.
Americans who wish to dive into cryptocurrencies, but who do not want to go through exchanges, will therefore be able to use the services of MoneyGram.
MoneyGram had formed a partnership with Ripple (XRP) from 2019, to reduce frictions relating to fund transfers.
As vulnerable as each other
MoneyGram is there a better alternative to exchanges? This partnership with Coinme allows cryptocurrencies to cover even more ground, and thus increase their adoption.
Just like exchanges, MoneyGram however, remains vulnerable to provisions of government institutions that infringe the privacy of its clients.
The Northern District of California recently authorized the US tax authorities to serve a summons John doe at Kraken and its subsidiaries to track down tax fraud.
The exchange will be forced to provide financial data of its customers who made $ 20,000 or more in crypto transactions between 2016 and 2020.
Decentralization aims to remove intermediaries, but both exchanges and fintech companies like PayPal and MoneyGram are re-centralizing the cryptosphere itself – a step forward for adoption, and a step back for decentralization.
When will we see a real DEX without owner or leader, with crypto-fiats transactions in Peer-to-Peer? Beyond MoneyGram’s obvious vulnerabilities to crypto regulations or court rulings, the company is still contributing to the democratization of cryptocurrency. 2021 sees fintechs like PayPal, Visa, Mastercard, and MoneyGram increasingly develop their crypto services. They have in front of them the FED, FinCeN, or even the IRS, capable of negatively and significantly influencing the development of cryptocurrencies in the United States. We’re diving into cryptos today, and we’ll take care of the rest tomorrow, no matter what!
Fashion is good, but blockchain is the future, we agree, right ?! It’s a great opportunity and an evolving sector! On a daily basis, my job is to try to popularize cryptos / blockchains as well as possible, which appear to be far too technical.
The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.