Western Union, the world leader in international remittances, has announced that the company will not integrate a cryptocurrency transfer solution to its service in the near future. Despite their soaring revolution in today’s bank flows, “these are still little used as a means of payment,” he said.
Addressing the New York Economic Club, the director of the largest money transfer company in the world has explained that its customers do not seem ready yet to make payments in cryptocurrencies, like fiduciary currencies that are just as easy and simple as practical .
“Consumers tell us what they want. They do not pay their hospital bills with cryptocurrencies. “
Nevertheless, the company remains open to emerging technologies. She is experimenting with the pilot implementation of xRapid (Ripple) for some time using the XRP as a transaction flow and money transfer means. However, the results are not up to the expectations of Western Union, which is more demanding. The company says it has not seen any cost savings or significant savings since this collaboration.
“We are still criticized that Western Union is not profitable, but we have not yet seen its effectiveness during our tests., Said Ersek. “It’s still too expensive,” he added. “On the other hand, central banks are skeptical about giving up control of their local currencies. Nations are built on flags, constitutions, borders and currencies. As a result, no central bank would consider migrating to decentralization.
The Ripple responds
Not surprisingly, Ripple responded to the statements of the Western Union CEO. Asheesh Birla, the vice-president of the firm turned to Fortune to claim the merits of cryptocurrency.
“Western Union did not see any improvement because it only tested 10 transactions with the XRP,” he said. “If they had migrated to a large volume, then maybe you would see something, but with 10 transactions, it’s not surprising that they do not generate any economies of scale. They make millions of transactions a month, and I’m not surprised that with 10 deals, there are no revolutionary results. “
At the same time, Ripple seems to be reversing his predictions that “dozens” of financial institutions will adopt the XRP by 2019.
Marcus Treacher, Senior Vice President of Customer Success at Ripple , announced:
“Banks feel that we can not put the whole world on a Blockchain. “
Do you think that Western Union will eventually offer a cryptocurrency transfer service? Tell us your opinion in the comments section below.