A new offering from Western Union, a money transfer company, addresses remittance challenges in areas where local currencies could lose value fast.
A “stable card” has been introduced to help people in countries with high inflation, such as Argentina, where prices have risen by 250% to 300% over the past year.
In a December 6 announcement, Western Union highlighted that remittances could lose nearly half their value in just a few weeks, as illustrated by a family receiving $500 that might have only $300 left by the time the funds are spent.
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Alongside that initiative, the company confirmed plans to issue its own stablecoin. It cited its global network spanning more than 200 countries.
The digital asset plan includes a platform called the Digital Asset Network (DAN), designed to help users exchange between traditional money and crypto.
During the announcement, it was noted that DAN will connect with four service providers to support this conversion process and is expected to be operational in the first half of 2025.
The stablecoin will be built on the Solana
Matthew Cagwin, the company’s chief financial officer, spoke at the UBS Global Technology and AI conference that the strategy is meant to give the company more oversight than relying on third parties to issue and manage the digital asset.
On December 2, Unlimit, a financial technology firm focused on payment services, introduced a new platform built to serve as a clearing hub for stablecoins. How does it work? Read the full story.
