Western Union is testing Ripple, but no current plans to use crypto

Andrew Munro 14 February 2018 NEWS

shutterstock data servers crypto 738x410

Despite a new mention of Ripple testing there has been no change in Western Union's previous position.

Western Union's cryptocurrency ventures began in 2016 with a $50 million investment in the Digital Currency Group (DCG), whose subsidiaries include CoinDesk, and whose holdings include Ripple and much, much more.

This is most likely its current avenue of Ripple testing. Western Union has previously described itself as aiming to stay on the "inside track" of blockchain and cryptocurrency development, but still not looking to adopt cryptocurrency payment systems in the near future. And despite a recent new mention of Ripple, it doesn't look like Western Union's position has changed.

In a February 13 earnings call, Western Union CEO Hikmet Ersek gave a bit more clarity into how exactly Western Union is testing Ripple, where it sees itself in relation to cryptocurrency and what's needed before there's a chance of wider adoption.

Part of this was a clarification that Western Union was still simply testing Ripple, in line with its goal of examining the potential of blockchain technology.

"Well, first of all, we will have to differentiate between cryptocurrency and blockchain obviously, right... blockchain is definitely something interesting as an application which we may use in several parts. And we do with Ripple do some tests with some corridors on the settlement side. Is it dollar to pesos or on that side? Can we use that on a real-time blockchain environment? And so this is a test that we are using on that."

Ongoing issues included the use of cryptocurrencies as actual currencies, and challenges around accounting for their lack of officially sanctioned value, and tentative use cases.

"...if digital currencies are ordinary currency, which is used by a country then we could do it but it's hard to do a carwash with a Bitcoin or go buy milk or pay school fees with a Bitcoin in Bangladesh or in Ghana or in Chile. So I think that's the environment."

The uncertain regulatory environment around cryptocurrency also remains a concern.

"Then other thing is also, look we are a regulated environment. That is one of our strongest asset that we are regulated in 200 countries and we respond to the regulated environment. We do have the compliance programs for 40,000 corridors. And within that environment, with the Reserve Bank together, we apply our regulatory operations to the regulatory environments. So it's important for us that this currency should be regulated, and so we can really serve the customers in the right way."



Despite the mention of Ripple's name, there's been no change in Western Union's previous position. Obviously Western Union is testing blockchain technology, and naturally Ripple would be among the systems it's testing.

Western Union has previously made its position clear and it doesn't look like anything's changed, as Ersek said.

"...so far, it's not something to report that we're going to change the environment. Our existing capability is very stable, as you can see from our performance, but that's something that we're taking seriously and looking at it and testing."


Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VEN, XLM, XRB, SALT

Latest crypto guides

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms and Conditions and Privacy Policy.
Ask a question
Go to site