Western Union Continues Testing Ripple, XRP – Report

Western Union Continues Testing Ripple, XRP

It seems that Western Union sees great potential in cryptocurrency XRP, especially as it is testing its use cases, investment bank Credit Suisse stated in a recent report.

In addition, Western Union continues carrying out tests on the coin:

“Also evaluating Ripple ,although initially was less bullish, trials continue.”

The study was surprising, as Western Union had not been really enthusiastic regarding Ripple and its XRP token after many months of testing.

CEO: Western Union’s payment system cheaper than XRP

Hikmet Ersek, CEO of Western Union, said his company operates its own transfer system which is five times cheaper than XRP.

Molly Shea, managing director for Asia-Pacific, earlier said Western Union should use cryptocurrencies if they prove more effective and cost-saving:

“When you think about cryptocurrencies, if those start to take off, we need to be ready. We need to be ready from a technology perspective. And we’ve got to be ready from – regulatory has to be there – but we constantly have to be looking for those trends where customers are looking and make sure that you’re ready to meet those needs and expectations.”

Cryptocurrencies have little impact on C2C market

Cryptocurrencies like XRP would initially have little effect on the consumer-to-consumer (C2C) market, according to the report.

Existing networks such as Transferwise and Remitly Union have already established global systems providing real-time cross-border C2C transfers at fairly low cost.

The study, however, identified great opportunities for payments from and to emerging markets. Matching (“netting”) fits very well with high-volume countries such as the developed G10 economies. In developing economies, however, “the challenges remain in the currencies of lower volume emerging markets.”

Credit Suisse also sees little hope in the consumer-to-business (C2B) payments, as cryptocurrencies “do not find acceptance” at least not in the medium term.

In contrast, Credit Suisse continues to argue that the business-to-business (B2B) offers enormous potential for growth, as existing solutions require long processing fees and transaction times.

The report reads:

“Up against an existing bankwire transfer (SWIFTmessaging) system that is viewed as less than ideal and utilizes multiple correspondent banks per transaction, resulting in uncertain timing (3-5days), high (and also uncertain) fees, and high failure rates. Platforms like Ripple have the potential to reduce settlement times (from days to seconds) and provide savings (low bps, but large absolute dollars).”

Bank of America confirms relationship with Ripple

Julie Harris, head of global banking at Bank of America (BofA), shed light on the lender’s relationship with Ripple as relevant details have been mysterious for years.

Harris said in the latest Treasury Insights podcast that the BofA’s first goal is to make sure that its customers can enjoy any service offered anywhere, anytime.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.