Western Union has tested the Ripple startup solution and concluded that it is more expensive to carry out transactions with it than with centralized solutions.
“Sending money with a Ripple solution costs 5 times more than through Western Union,” said Western Union Chief Executive Officer Hikmet Ersek at Brainstorm Finance conference.
At the same time, he noted that cryptocurrencies and blockchains have enormous potential for making payments. “We have not finished testing Ripple technology. This is an ongoing initiative. We want to fully explore all the possibilities and learn something from Ripple, ”Ersek said.
Recently it became known that Ripple is investing $ 50 million in the company MoneyGram, which is a competitor of Western Union. $ 30 million will be spent on the purchase of shares of the company, and the remaining funds will be invested over the next two years. In turn, MoneyGram will use the Ripple Token (XRP) for international money transfers.
“From this deal both parties will benefit. Some services will provide MoneyGram Ripple, some – Ripple for MoneyGram. This deal looks promising, ”commented Ersek cooperation. “We are in other conditions. We have our own system for making calculations, which is extremely economical. ”
The CEO of Western Union also shared his views on the new cryptocurrency initiative Facebook.
“We do not see a rival in Libra, at least in the foreseeable future. We have developed our infrastructure for many years to create a truly global system, which is now used to make remittances totaling $ 300 billion a year. ”