Western Union Considers Onboarding Cryptocurrency

December 20, 2018 AtoZ MarketsWestern Union the U.S. financial service and communications giant in the recently released video stated that they are ready to start using cryptocurrency in their services as soon as it becomes global.

WU Has Enough Knowledge To Start Using Cryptos

In a brief U.S. media broadcast published by WU, the company’s  President Odilon Almeida stated that they have been evaluating the use of the cryptocurrency and the blockchain technology and how they can improve WU service delivery. As the company’s president explained further, the firm is interested in adopting cryptocurrencies as an option for users to exchange for fiat currencies.

“Western Union is ready today to adopt any kind of currency as it already operates with 130 of them,” WU executive director stated in his interview. Almeida said, that cryptocurrency might become one more exchange option between people and countries. According to the company’s leader, “WU is in the perfect position to benefit from the cryptocurrency movement in the long-term compared to any startup”, due to a “deep knowledge of the international money transfer system and  great amount of users.

Cryptocurrency Has to Become Global

In his interview, the executive director explained that cryptocurrencies have not yet reached mass implementation, because they have yet to master three things: management, compliance, and variability. Back in June, WU CEO Hikmet Ersek said that WU would not join the crypto passion until these currencies became more widely used. However, in Almeida’s opinion, WU is already better prepared to deal with such variables, since it “allocates significant resources to all these three tasks.” He explained, that as soon as cryptos will turn into a global movement, WU will be among the first companies which will start using it in their services. As for the blockchain, this technology does not face the problems that accompany cryptocurrency, as Almeida stated.

WU leader explained that the company considers whether the blockchain technology can make the company more efficient. Almeida in his interview emphasized that, unlike cryptocurrency, the blockchain technology has greater potential. He added that in the future there will be more and more ways to use that kind of technology. The executive director of the finance giant claimed that “there are many potential applications for the financial services sector, and WU is investing in the search for those that best fit their company’s  platform.”

Collaboration With Ripple Was Not Successful But WU Stays Optimistic

WU president further clarified that WU has partnered with Ripple Labs to check whether sending payments using the blockchain is faster and cheaper. However, regarding the allegedly ongoing tests, WU stated that they did not see any benefits from Ripple technology during the six-month trial period. Although, Ripple senior vice president Ashish Birla said that it was impossible for Western Union to see any advantage in saving money after conducting ten transactions using XRP. “If they moved the volume to scale, then perhaps you would see something, but from 10 it’s not surprising that they don’t see savings.

They make millions of transactions per month, and I’m not surprised that with ten transactions he did not have amazing results,” Birla explained. However, the WU leader expressed his optimism regarding the prospects of leveraging Ripple for cross-border payments, even though the tests have been on-going for a while “Our pilot with Ripple goes into the same space. It’s about learning, “ WU president added.

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