Western Union’s CEO said that the company isn’t going to be adding a cryptocurrency transfer solution to its services, Marketwatch reported June 13.
In a speech at the Economic Club of New York, Hikmet Ersek, CEO of Western Union, the biggest money transfer firm in the world, said that customers lean more towards the use of fiat over digital currencies. This is because of the possibility for broader use of hard assets like fiat currency. Ersek explained that:
“The consumers tell us what they want. People aren’t paying their hospital bills in cryptos.”
Ersek expanded on this statement, saying that another reason the firm wasn’t going to provide a crypto transfer service was that of central banks’ generally negative stand towards crypto. According to the CEO, most central banks won’t give up control over their country’s’ local currency just to shift to a digital alternative.
Last December 2017, Western Union started a campaign against wire transfer transactions that involve digital currency exchanges due to the firm’s internal regulations.
Meanwhile, in February of this year, Western Union confirmed it was testing transactions made with the use of Ripple’s new blockchain-based settlement system. Ersek had said of the tests:
“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.”