Western Union: Cryptos Arent Replacing Dollars Anytime Soon

Home Investment Western Union: Cryptos Arent Replacing Dollars Anytime Soon
Western Union: Cryptos Arent Replacing Dollars Anytime Soon

Western Union: Cryptos Arent Replacing Dollars Anytime Soon

Hikmet Ersek, CEO of Western Union (WU), has indicated that the company will not be offering cryptocurrency transfers in the near future.

“Nations are built on flags, constitutions, borders and currencies… The consumers tell us what they want. People arent paying their hospital bills in cryptos,” he said in a speech at the Economic Club of New York.

Ersek added that WUs customers are far more inclined to use fiat currency than cryptos as they prefer having tangible cash.

This is especially true in countries which could be described as “cash-only” economies, where most corner stores and even some supermarkets do not accept debit card payments. People used to paying with tangible cash rarely transition to something digital unless they have a gateway.

Admittedly, cryptocurrencies are not user-friendly for people unfamiliar with online digital purchases. It is even harder to wrap ones head around the difference between a blockchain and a banking institution.

Ersek also said that fiat currencies are more favorable option for central banks, which would be highly unlikely to shift to decentralized digital currencies.

Central banks prefer dealing in currencies whose flow they can control, directing the economy during emergencies and preventing bank runs. This is why Schweizerische Nationalbank, Switzerlands central bank, was skeptical about introducing a cryptocurrency of its own. Even with control over the asset, it would have to act as a commercial bank, in its own words, possibly even aggravating any bank runs.

On the other hand, we have the Bank of England, which submitted a report concluding that the idea of central bank-issued cryptocurrencies isnt as gloomy a prospect as Sweizerische Nationalbank argues.

WU itself was experimenting with XRP in the past, possibly using it as a potential vehicle for remittance processing. Perhaps the companys view on cryptocurrencies is more nuanced than Ersek let on.

This article appeared first on Cryptovest Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published.