Western Union Isn’t Planning to Allow Cryptocurrency Transfers Soon, Stated CEO
CEO of Western Union Co. revealed the financial services company will not add cryptocurrency transfer to its portfolio soon, according to MarketWatch.
During his interview at the Economic Club of New York, Hikmet Ersek argued his lack of interest in crypto assets, mentioning that clients are more interested in fiat money rather than virtual currencies. “The consumers tell us what they want. People aren’t paying their hospital bills in cryptos,” he said.
To bring arguments and support his opinion, Ersek referred to major central banks who refuse to accept cryptocurrencies for security reasons. According to CEO, financial institutions will not risk losing control over local fiat currency in exchange for digital alternatives. He argued that “nations are built on flags, constitutions, borders and currencies.”
Towards the end of 2017, Western Union released a campaign against cryptocurrency-based wire transfers due to internal regulations. Asked by a Reddit user, the company told Kraken it will not take on transactions that involve virtual currencies due to legislative standards.
However, this year, the giant money transfer service attempted to make transactions using the Ripple’s blockchain-based protocol. Ersek commented that “We are looking especially in the processing settlement and working capital optimization, also in the regulation part, on the compliance part on the blockchain capabilities.”