Western Union President, Odilon Almeida, said that company has been evaluating the use of Crypto Services in Western Union.  It is keen to enhance their service delivery with the use of blockchain technology.

Exchange Currency

 Western Union is also looking forward to adopt cryptocurrency as an option for exchanging fiat currencies. Similarly, Almeida said the move would only see the light of day if it manages to get a global reach. This means American based financial service company Western Union is ready for cryptocurrencies.

Limitations

Almeida also mentioned some of the key limitations of cryptocurrency adoption due to which it is difficult to achieve mainstream adoption. Furthermore,  he listed the three major deterrents to its growth as:

  1. Volatility
  2. Governance
  3. Compliance

He appreciated and commended Stablecoins for actively working towards solving the problem of volatility in crypto markets:

“Western Union is ready to adopt any kind of currency. We already operate with 130 currencies. If it’s the right strategy to introduce cryptocurrencies to our platform, technology-wise it’s just one more currency. I think cryptocurrency may become one more option of currency, or assets, around the globe. It can make an exchange between people and businesses. If that happens, we will be ready to launch.”

– Western Union President Odilon Almeida said

Blockchain Trial

Crypto Services in Western Union-In June 2018, Western Union ran a blockchain trial with Ripple, at which time the company CEO Hikmet Ersek, argued that the enterprise didn’t see any cost savings from the trial. hence, there was no significant value proposition for integrating Ripple into its system for cross-border payments.

“We are always criticized that Western Union is not cost-efficient, blah blah blah, but we did not see that part of the efficiency yet during our tests. The practical matter is it’s still too expensive,”

-Ersek told Fortune in an Interview

Ripple’s senior vice president of product, Asheesh Birla, said it was impossible for Western Union to see any cost savings benefits after making ten transactions using XRP.

“If they were to move volume at scale, then maybe you would see something, but with 10, it’s not surprising that they do not see cost savings. They do millions of transactions a month, and I’m not surprised that with ten transactions it didn’t have earth-shattering results.”

Almeida will remain optimistic about the prospects of leveraging Ripple for cross-border payments.

“Our pilot with Ripple goes into the same space. It’s about learning. We are looking at blockchain technology and really seeing if it can make us more efficient

Leave a Reply

Please Login to comment

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

  Subscribe  
Notify of