CMC News

Western Union Plans Stable Card for High-Inflation Markets

#WesternUnion will introduce a stable card designed to protect users in high-inflation economies as part of its broader #stablecoin and digital asset strategy, chief financial officer Matthew Cagwin announced at the UBS Global Technology and AI conference.

The initiative builds on the company's investor-day reveal that it is moving beyond traditional cross-border payments into a multi-pillar digital asset roadmap. Cagwin pointed to Argentina, where annual inflation recently hit 250% to 300%, noting that remittances can lose nearly half their value within a month.

He described a scenario where a family in the United States sends $500 home, but by the time the recipient spends it the next month, it is only worth $300. Western Union's stable card represents an increment to its existing prepaid card offered in the U.S., adapted for markets experiencing extreme #currency devaluation.

Cagwin also revealed Western Union's intention to issue its own coin. He said the company believes its distribution footprint across 200 countries gives it a natural advantage, especially in emerging markets where #remittances form a significant share of GDP.

The company plans to control the economics, compliance, and overall distribution of its coin, with ambitions to grow adoption beyond initial target markets. Western Union's reach into underbanked regions could provide distribution channels that newer crypto projects lack.

Another major component of the strategy is the #Digital Asset Network, which links Western Union to four on-ramp and off-ramp providers. The platform is expected to go live in the first half of 2025, enabling customers to move between traditional currency and digital assets.

Western Union confirmed its upcoming stablecoin settlement system will be built on the $SOL blockchain.