Payments giant Western Union is collaborating with a $75 billion bank to study the effects of a US central bank digital currency (CBDC). According to a new press release, Western Union and Philippines-based BDO Unibank are working together to explore how the implementation of a US CBDC, or a digital asset issued and backed by […]
The post Payments Giant Western Union Collaborates With $75,000,000,000 Bank on a US CBDC Pilot Study appeared first on The Daily Hodl.
Financial services companies Paypal and Western Union have each filed three new trademark applications covering a wide range of crypto services. Paypal’s applications are also for the payments giant’s logo. Paypal’s New Trademark Filings for Crypto Services Paypal Inc. has filed three new trademark applications with the United States Patent and Trademark Office (USPTO). Mike […]
Analysts from the multinational investment bank and financial services company Goldman Sachs Group Inc. have downgraded Coinbase Global Inc. in a note to investors on Monday. Today, Coinbase shares are down 83.68% from the stock’s all-time high (ATH) in November 2021. Goldman analyst William Nance explained that his group of market strategists believes “Coinbase will […]
Remittance giant Western Union has joined other financial services companies supporting sanctions in response to Russia’s invasion of Ukraine. The decision will affect customers in the Russian Federation as well as those in Belarus, an ally of Moscow, backing its military operation. Western Union Condemns Invasion of Ukraine, Halts Services in Russia and Belarus Money […]
Remittance firms operating in El Salvador appear reluctant to support Bitcoin despite the country's new law mandating the crypto asset as legal tender.
Despite El Salvador’s recently passed law mandating Bitcoin as legal tender, local remittance firms are reportedly hesitant to adopt BTC.
Speaking to Reuters, Autonomous Research fintech analyst, Kenneth Suchoski, argued that remittance firms are unlikely to launch support for Bitcoin and other crypto assets until prompted to do so by customer demand, likely creating a stalemate for the local payments industry.
“For Western Union and some of the other remittance providers, keep in mind that most of the volume in the remittance industry is going from developed markets to emerging markets primarily to people — families and friends — that operate in cash,” he said.
Suchoski estimates that less than 1% of global cross-border remittances are conducted using crypto assets, adding:
“To the extent that bitcoin isn't adopted and there's not widespread acceptance, these remittance providers are still going to be relevant for the years to come.”
Global payments firm, MoneyGram International, also emphasized the challenge of navigating undeveloped infrastructure enabling ramps between crypto assets and local fiat currencies in emerging economies.
“We've built a bridge to connect bitcoin and other digital currencies to local fiat currency," a MoneyGram representative told Reuters, adding:
"As crypto and digital currencies rise in prominence, a core barrier to further growth is the on/off ramps to local fiat currencies."
Last month, MoneyGram revealed a partnership with Coinme to enable users to buy and sell crypto assets using USD at 12,000 retail locations across the United States.
Related: El Salvador's Bitcoin adoption may jeopardize IMF negotiations: JPMorgan
Suchoski also emphasized the compliance burden of supporting crypto assets for payments firms, noting that Western Union’s annual compliance costs had nearly doubled from around $100 million to $200 million over roughly the past decade.
