Western Union CEO Devin McGranahan views the growing stablecoin adoption wave as an opportunity, despite concerns held by traditional banking institutions that view it as a threat.
In an interview with Bloomberg, McGranahan highlighted the opportunities presented by the global stablecoin movement. His beliefs come amidst fears and concerns from traditional financial institutions that view stablecoins as a threat to the monetary system if not regulated properly.
One of the benefits of using stablecoin that he believes could particularly strengthen the payment service sector is its usage when it comes to moving funds around the world at a speed that surpasses that of traditional money transfers.
“We’re 175 years old and we’ve been innovating across that 175 years and stablecoin is just yet one more opportunity to innovate,” said McGranahan in his broadcasted interview on July 22.
“We see stablecoin really as an opportunity, not as a threat,” he added.
Another business opportunity that Western Union could provide when it comes to stablecoins is how it can help to streamline the process of converting stablecoins into traditional fiat currencies, especially in parts of the world where such services are not available.
“For many of our customers around the world, a stablecoin presents a store of value that’s tough to achieve in their country. So offering stablecoin as a store of value to our customers is gonna be an opportunity,” said McGranahan.
Western Union set to capitalize on stablecoins
Devin McGranahan explained that the company has begun delving into how to make stablecoin-to-fiat settlement services available in regions like Latin America and Africa. The services are meant to make it easier and quicker to convert currencies through the use of stablecoins.
“So we are also exploring other partnership with people who want on-ramps and off-ramps in different parts of the world and how we can enable Western Union’s funds in and funds out to enable people to purchase and sell stablecoins,” he said.
In addition, he also stated that the company is exploring stablecoin offerings for customer digital wallets across the globe by partnering with “infrastructure companies” which could possibly include stablecoin giants like Tether (USDT) and Circle (USDC).
Western Union’s confidence in the benefits that stablecoins boast directly contrasts the concerns held by traditional bankers and economic institutions.
Most recently, the Bank of England’s Governor Andrew Bailey cautioned banks against issuing stablecoins. He believes that stablecoins pose a threat to the nature of money and may serve as a systemic risk to financial stability if not properly regulated.
The Bank of England’s stance echoes that of the IMF. Earlier in June, Deputy Managing Director at the IMF Bo Li pointed out still regulatory issues related to the stablecoin acceleration sweeping the globe. He stated that most regulations are still ambiguous on how they classify stablecoins as a monetary currency or as a financial asset.
