Western Union, famous for the cross-border money transfers, confirmed testing Ripple’s blockchain-based settlement system for transactions.
Tell me more!
“We are looking especially in the processing settlement and working capital optimization, also in the regulation part, on the compliance part on the blockchain capabilities. And we do test, we do have some tests with Ripple,” said Western Union CEO Hikmet Ersek.
Why is it important
Money transferring systems use pre-funded accounts to complete customers’ transfers. That can lock up a substantial capital. Blockchain technology and digital currency could potentially help to move money faster.
What can we learn from it
- A partnership with Western Digital can significantly boost Ripple’s credibility. Earlier Ripple stroke a deal with the Saudi Arabian Monetary Authority (SAMA) to provide the technology for cross-border payments to banks in Saudi Arabia.
- The move from Western Digital can easily encourage other cross-border payment operators to look into cryptocurrencies.