The service is being positioned as a hybrid: a stored-value USD balance that can be funded, received and cashed out through MoneyGram’s existing network. The launch is set to start in Colombia before a wider regional rollout.
Users will not be required to handle private keys or pay gas fees directly; the blockchain work is hidden behind the app.
The Colombian peso has lost over 40% of its value in recent years, and that erosion of buying power is a major reason people are interested in holding value in a USD-pegged unit.
Cash-outs to pesos will be possible at MoneyGram agents, and the company is planning card features that would let users spend in USD outside the country.
Reports have disclosed that regulators, KYC and AML rules will shape how the product is rolled out and used.
Fees for converting between USDC and pesos, agent commissions, and any withdrawal costs were not fully detailed in the initial announcements.
Liquidity and the maintenance of the USDC peg are other factors users should keep in mind. While stablecoins aim to track the US dollar, risks around backing, liquidity and market pressure can affect that peg.
MoneyGram is launching basic functions first and has said that debit card spending in USD and incentive programs for deposits are planned but not available at day one.
The firm describes the app as a way to give people more choice about how they hold and move money, without requiring deep crypto knowledge.
Featured image from PlanetofHotels.com, chart from TradingView
