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Western Union Targets High-Inflation Markets With ‘Stable Card’

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Speaking on the UBS Global Technology and AI convention final week, Western Union chief monetary officer Matthew Cagwin stated the initiative would assist protect the worth of remittances by performing as a secure different to quickly depreciating native currencies.

“Imagine a world the place your loved ones within the US is sending you $500 dwelling, however by the point you spend it within the subsequent month, it’s solely price $300,” said Cagwin, citing Argentina as a major instance of a rustic with inflation-related problems with inflation over 30%.

“We can see an excellent utility for our secure card there, which is an increment to our pay as you go card we’ve got at the moment right here within the US.”

Tackling Inflation With Stablecoins

The firm can also be creating its personal crypto token and leveraging its presence in 200 international locations to create distribution benefits over typical crypto initiatives.

This initiative is a part of a broader digital asset technique that features its Digital Asset Network infrastructure connecting to on/off-ramp suppliers and stablecoin settlements.

“We suppose that we are able to make a marketplace for our coin in these markets, and we needed to have the ability to management the economics, management the compliance, and management the general distribution, and we predict we are able to develop that past that,” Cagwin stated.

Western Union introduced its plan to launch US greenback Payment Token (USDPT), its new stablecoin, in late October. It additionally introduced a Solana-based “Digital Asset Network designed to bridge the digital and fiat worlds.”

“As we evolve into the digital belongings area, Western Union’s USDPT will permit us to personal the economics linked to stablecoins,” stated Devin McGranahan, President and CEO of Western Union on the time.

Inflation Soars In These Countries

Venezuela has the very best inflation on the earth at 172%, according to Trading Economics. South Sudan additionally has triple-figure inflation.

Iran, Haiti, Argentina, and Turkiye all have excessive inflation, starting from 30% to 45%. Inflation additionally stays persistently high in lots of developed international locations, such because the UK, Russia, Austria, and Australia, following the pandemic lockdowns.

Another drawback is that authorities and central financial institution inflation figures are sometimes undermeasured and infrequently replicate actuality. They don’t embrace day-to-day bills reminiscent of groceries and power payments, that are consistently rising in most international locations.

The publish Western Union Targets High-Inflation Markets With ‘Stable Card’ appeared first on CryptoPotato.

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