Why Western Union decided against implementing cryptocurrency

| |

  • Western Union will not turn to cryptocurrency solutions
  • Blockchain technology under consideration if it serves the needs of customers
  • Company will continue to monitor cryptocurrency market

With numerous platforms for crypto money transfers such as Moneygram and Flywire available, as well big banks experimenting with Ripple payments, many have begun to wonder when Western Union might do the same. However, it has been revealed that Western Union has decided to say no to cryptocurrencies and will not be implementing this version of international money transfers any time soon.

Still, the company prefers to keep its options open and will be monitoring the cryptocurrency market.

Simon Millard, the Australian Western Union Director, revealed the following three reasons behind their decision not to take part:

1) Regulation

Millard explained that Western Union spends approximately AUD $200m annually on compliance demands. Given the fact that the company enables money transfers between 200 countries and has 550,000 agent locations, this should come as no surprise.

Cryptocurrencies are still mostly outside of the scope of regulation, and using them for international money transfers can bring legal complications. Furthermore, supporting 200 countries and all the possible combinations – with each country having its own regulations – is too problematic and complex for Western Union to manage, especially given that cryptocurrency regulations are a grey area.

2) Security

Millard said that security, trust and credibility are critical, and cryptocurrencies can perform poorly in all these departments. New cryptocurrency scams arise every day, and some argue that popular options such as Bitcoin are nothing more than a legitimised “Ponzi scheme”.

Cryptocurrency is still in its infancy. Western Union, on the other hand, has been around since 1871. It seems obvious why they would not want to put their reputation at risk.

3) Stability

As we have seen over the last three months, cryptocurrency markets are rather volatile and are prone to changes in currency value. Western Union would be wise to be patient and observe developments in the new trend to see how the market stabilises over time. 


Nigel Frith
Nigel Frith
Global General Manager
Daniel is Founder and CEO at FXcompared and has numerous years of experience in the international finance world, especially within the media, technology and property sectors. Daniel is passionate… Read more

Most Read

Use Our Currency Comparison Tool

Editor's Choice

The website and the information it provides on this site is for informational purposes only, and does not constitute an offer or solicitation to sell shares or securities. None of the information presented is intended to form the basis for any investment decision, and no specific recommendations are intended. Accordingly, this website and its contents do not constitute investment advice or counsel or solicitation for investment in any security. This website and its contents should not form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. FX Compared Ltd expressly disclaims any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.