Western Union Isn’t Adding Cryptocurrency Support Anytime Soon
Global money-transfer giant Western union Co. is not adding any cryptocurrency transfer to its solutions any time soon, the company CEO confirmed.
Speaking at the Economic Club of New York on Wednesday, Western Union CEO Hikmet Ersek explained that the company will not add support for digital currencies until they become more widely used, Marketwatch reported.
“The consumers tell us what they want. People aren’t paying their hospital bills in cryptos,” Ersek said.
According to the CEO, cryptocurrencies still have a long way to go as governments are unlikely to give up control over their local tender to shift to a digital and decentralized alternative. He said that “nations are built on flags, constitutions, borders and currencies,” adding that no central bank home to a reserve currency would consider giving up that kind of control.
With cryptocurrencies set to disrupt the financial payments systems, some governments and Central bankers are taking measures to limit its adoption. In a response to a right to information application filed by an Indian lawyer, the Reserve Bank of India admitted it conducted no research or consulted finance experts prior to issuing an outright ban on Cryptocurrencies.
The RBI decision may then be seen as an effort by the Central Bank to retain its power.
In December of last year, Western Union launched a campaign against wire transfer transactions involving digital currency exchanges due to the company’s internal regulations. The company reportedly told cryptocurrency exchange Kraken that it would not process a transaction related to digital currencies because it was against internal rules.
Earlier this year, Western Union confirmed it was testing transactions with the use of Ripple’s blockchain-based settlement system. Ersek said at the time that the company would be adding XRP support only if it can prove to lower their costs.
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