Western Union, a leader in financial services, plans to implement a stablecoin-based system to modernize its remittance services for over 150 million customers. According to remarks by CEO Devin McGranahan during their recent earnings call, the initiative aims to utilize blockchain technologies to enhance transaction efficiency and transparency while decreasing reliance on traditional banking.

“We see significant opportunities for us to be able to move money faster with greater transparency and at lower cost without compromising compliance or customer trust.”
“We see significant opportunities to move money more swiftly while ensuring transparency and maintaining low costs, all while adhering to compliance and preserving customer trust.”

Western Union reports around 70 million transactions quarterly, and the adoption of blockchain could offer them substantial advantages, especially in more than 200 countries worldwide.

The company had previously hesitated to integrate cryptocurrencies, citing volatility and regulatory risks, but recent legislative changes have prompted a shift in strategy.

Benefits for High-Inflation Regions

McGranahan noted that the new stablecoin feature would provide customers more options, especially those in rapidly inflating economies, allowing them to manage their finances more effectively.

“In many parts of the world, being able to hold a US dollar-denominated asset has real value as inflation and currency devaluation can rapidly erode an individual’s purchasing power.”
“In many areas globally, holding a US dollar-based asset is crucial due to the rapid devaluation from inflation, which can significantly diminish purchasing power.”

Competitors Follow Suit

Other companies in the sector, such as Early Warning Services behind Zelle and MoneyGram, have also announced plans to adopt stablecoin technologies to streamline their payment systems.