Western Union Excites The Bitcoin Community With Notion Of Possibly Using Cryptocurrencies
Western Union Will Possibly Use Cryptos
The financial company Western Union seems to be ready to dip into the world of cryptos. The president of the company, Odilon Almeida, has affirmed that the Western Union is ready for any kind of currency, which certainly includes cryptos.
According to the beliefs of the president Almeida, the company already operates with over 130 currencies all over the world. At the moment, they are all fiat currencies but they are technologically and technically ready to introduce cryptos to their assets if they believe that they may be a good idea.
Almeida affirms that cryptos are just other types of currency. According to him, they may become more of an option in the future if they are accepted by more people. In order for cryptos to achieve mass adoption, he believes, they will have to solve some problems, though.
One of the main problems that cryptos need to solve in order to become popular is the issue of volatility. Cryptos are very volatile. While they are not especially volatile when you compare them to some stocks and assets (especially during 2018, when cryptos started to be less volatile and the world stock market went to be more), they are much more volatile than fiat cash.
The only fiat currencies that are less volatile than cryptos are the ones which are completely out of control like the currency that is used in Venezuela.
To solve this issue, the Western Union is betting on stablecoins, which can be pegged to strong tokens and this can make them considerably more secure and less volatile. Therefore, the possibility that cryptos see the light of day in the Western Union is far more likely for stablecoins.
Almeida has also cited governance and compliance as two other big issues that prevent tokens from becoming mainstream for once and for all.
Western Union Changed Its Mind About Cryptos Recently
The official position of Western Union about cryptos has changed a lot recently. In the last few months, the company is considerably more open to cryptos and the blockchain than it was before. CEO Hikmet Ersek affirmed in June that the company would not add crypto solutions so soon. Now, the company is following the will of the consumers and it is ready to add them if they are needed.
Now, the Western Union is even keen on using the blockchain technology to produce results. The company has already partnered with Ripple in order to find less expensive ways to make cross-border payments using the blockchain. The partnership was made to turn the company into something more cost-efficient.
However, the company did not find the results of the partnership to be too satisfactory. According to the spokesman of the Western Union, they did not save too much money by using the process.
The senior vice president of product for Ripple, Asheesh Birla, affirmed that the company only made like 10 transactions and stopped and that the cost saving would come from actually using the technology to scale the transactions and make them more efficient.
It still remains to be seen if the partnership will continue and actually bear fruit or if it will stop soon.