CEO Hikmet Ersek: Western Union Will Not Add Crypto Transfer Support in Near Future

CEO Hikmet Ersek: Western Union Will Not Add Crypto Transfer Support Soon

According to a report by MarketWatch dated June 13, 2018, Hikmet Ersek, the CEO of Western Union, said that Western Union won’t be adding a solution for transferring cryptocurrencies.

During his speech at New York’s Economic Club, the global money transfer service CEO explained to the listeners that customers have a tendency to lean towards fiat money instead of digital currencies. There is a broader potential for fiat money to be used.

It is no secret that in the current economy, cash can be used to purchase just about anything. However, the same cannot be said about digital currencies. And that is what the CEO of the largest money transfer company in the entire world meant when he said:

“The consumers tell us what they want. People aren’t paying their hospital bills in cryptos.”

He also mentioned the skeptical stance of most of the central banks towards cryptocurrencies to be one of the many reasons not to get into services pertaining to digital assets.

Ersek said that the central banks have no intentions of shifting to digital and decentralized currencies and giving up control over local currencies.

As per Ersek, “nations are built on flags, constitutions, borders, and currencies.” He added that central banks having their own reserve currencies would never consider giving up the kind of control they have over the currency—and economy.

In December last year, Western Union had launched a campaign against wire transfer transactions which had anything to do with digital currency exchanges. The reason behind the campaign was the internal regulations of the company.

According to a Reddit user’s post, the cryptocurrency exchange Kraken was told by Western Union that its transaction would not be processed since it was related to digital currencies and is hence against the internal rules of the company.

Back in February, the company confirmed that it was indeed testing transactions using Ripple’s settlement system. Ersek said,

“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.”

Regardless of what Western Union decides, the blockchain is a technology that is here to stay.

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Madhuri Arora
A passionate writer and an avid reader. I love watching action and superhero movies. Love food, music, travel and games.