Western Union open to Cryptocurrency adoption

Global cash transfer giant Western Union has revealed that it is evaluating options for the integration of blockchain technology and Cryptocurrency services to its platform. The revelations were made via a blog post and a video on the company’s blog. The news follows an increased buzz around cryptocurrencies globally.

Speaking in the ReutersPlus video, Western Union Global Money Transfer President Odilon Almeida says that they are better poised to benefit from the cryptocurrency movement in the long run in comparison to any other start up given their broad knowledge and experience in the international Money transfer business.

Experience in the global money transfer Business

The president added that the new wave of digital currencies was double entendre. On one hand is the digital currency itself and its underlying technology on the other hand. The blockchain technology is already under review at Western Union. Additionally, the global money transfer giant has also partnered with Ripple Labs to test whether the sending of payments was faster and less expensive than the current model that Western Union uses.

Almeida, in supporting the decision by the firm to adopt blockchain and cryptocurrencies, said that it would not be a long shot given that the company has soaked up enough experience in the over two decades it has been in the global money transfer business. The company hopes to capitalize on its experiences.

Western Union Global Money Transfer says that it has identified three areas that hinder the growth, acceptance and applicability of cryptocurrencies and its underlying technology – Blockchain. These areas are Compliance, Governance and Volatility.

Power of Establishment

The company enjoys a considerable power of establishment including a global outreach and physical addresses in most parts of the world. Western Union also moves money in over 130 currencies and has invested massive resources towards addressing the three Hindrances to Cryptocurrency and blockchain as named above.

The president added that, “Cryptocurrency and its related technology might become one more option for assets to be exchanged between people and countries.” The move to adopt cryptocurrencies in its services is to ensure that when the time comes when crypto will be the generally accepted form of exchange, Western Union is ahead of its peers. CRYPTO IS COMING!

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Ripple Hit With Another Lawsuit – Is It A Security?

Ripple Labs has been hit with , with the plaintiff claiming that it has operated as a security and therefore acted illegally. If the courts find in favour of the plaintiff, it could mean that they would face substantial fines and only those exchanges that are registered with the SEC would be able to offer XRP trading. Coinbase is attempting to secure SEC licensing, but has not yet managed it, so this could have a hugely detrimental effect on the cryptocurrency, hence why the company fervently argues its corner.

XRP As A Security

The current lawsuit alleges that the way in which Ripple Labs and the money service unit of Ripple, XRP II LLC, have run Ripple as a security. Specifically, the plaintiff claims that XRP is too closely managed and distributed by Ripple Labs, so does not quality as being decentralized. David Oconer has also said that the organisation has actively promoted the cryptocurrency in a bid to inflate prices, which is further evidence that it is being managed as a security.

The Accusation

In May 2017, Ripple said that they would be placing 55 billion XRP in an escrow account. Oconer claims that the company, including CEO Brad Garlinghouse, promoted this move because they believed it would inflate prices. Oconer said that limiting supply had the desired effect of increasing its prices. XRP rapidly increased in price from just over 20 cents a token to nearly $4.

Divisive Cryptocurrency

This isn’t the first case of this kind faced by Ripple. On two previous occasions the company has been accused of managing XRP as a security. The most recent lawsuit was only filed last month, and it seems likely that whatever the result of these cases, Ripple will continue to be dogged by claims that XRP is a security. Ripple certainly has its detractors, but there are those that believe it could bridge the gap between cryptocurrency and fiat currency, and while it might not become the single currency that Garlinghouse wants it to be, it could pave the way for others in the future.

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