Western Union Continues To Test Cryptocurrency Transfers
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The American company Western Union, conducts pilot testing of international payments using Ripple technology.
Last June, CEO Hikmet Ersek spoke about early trials with XRP. Using cryptocurrency turned out to be five times more expensive than using its own Western Union system. In the middle of summer 2018, Hikmet, as part of a meeting of the Economic Club in New York, announced that the company would not work with cryptocurrencies, since “customers do not pay their bills in cryptocurrency”. At the same time, in July 2018, Western Union received a patent for secure payments, including cryptocurrency.
In February 2019, the CEO of the company in the Asia-Pacific region, Molly Shea, made a statement. A company can strategically use crypto assets if it becomes clear that they are the next wave in international payments.
At the same time, Shea noted that with the introduction of blockchain technologies and even cryptocurrencies in international payments, the fiat currency “will not go anywhere”. As the cryptocurrency industry is still in a development phase. At the same time, the company plans to stay updated on all technological innovations and their possible applications in real life.Bloomberg suggests that such a Western Union initiative came about as a result of losses incurred by the company in 2017. Management simply began to look for new ways to attract customers.
According to a Credit Suisse report released in January 2020, cryptocurrencies “are unlikely to receive payments between consumers, at least in the medium term.”
At this stage, the company is studying whether blockchain technology can increase speed and reduce the cost of international payments.
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