Western Union considering using Bitcoin

[Elwar]

Western Union Co. and MoneyGram International Inc. are studying ways their customers could use their services to send and receive money transfers denominated in bitcoins, the companies' executives say.

"If Bitcoin continues to grow and the value is defined more internationally, we may find an opportunity for Bitcoin to be used to pay for commerce transactions through a Western Union business solution," said David Thompson, an executive vice president and chief information officer of Western Union.

"We've been contacted by folks who are doing various things in this space to see if there's opportunities for us to help enable greater functionality for some of these [Bitcoin companies]," said Peter Ohser, MoneyGram's senior vice president of U.S. and Canada. "But we've not committed and don't have any imminent plans to announce anything."

http://online.wsj.com/article/SB10001424127887324493704578431000719258048.html


Full article:

The fervor over the digital currency Bitcoin has drawn interest from two of the world's largest movers of money.

Western Union Co. and MoneyGram International Inc. are studying ways their customers could use their services to send and receive money transfers denominated in bitcoins, the companies' executives say.

Both companies run remittance networks commonly used by immigrants to send money to friends and family members in foreign countries. Western Union also operates a business-solutions unit that helps companies send payments to other businesses.
 
The firms have no immediate plans to add Bitcoin to the more-than-100 currencies in which each company processes transactions. But both say the increasing popularity of the virtual money has prompted them to consider whether they should make it available in the future.
 
"If Bitcoin continues to grow and the value is defined more internationally, we may find an opportunity for Bitcoin to be used to pay for commerce transactions through a Western Union business solution," said David Thompson, an executive vice president and chief information officer of Western Union.

The Englewood, Colo.-based company is primarily exploring ways its commercial customers may want to use bitcoins, Mr. Thompson said.

Bitcoin is the name for the peer-to-peer payments system that allows people to pay each other from virtual accounts accessed online and on mobile devices, as well as being the term used for units of the digital currency itself. Launched in 2009 by a developer whose identity remains undisclosed, the digital money isn't backed by any central governing body, such as the Federal Reserve, and allows users to remain mostly anonymous—save for their "Bitcoin address"—in transactions.
 
Buzz around Bitcoin has grown in recent weeks because of wild swings in the currency's value, driven by economic turmoil in the euro zone, outages at the largest Bitcoin trading exchange and U.S. Treasury Department guidance stating money-transmitter rules that apply to the likes of Western Union and MoneyGram also apply to exchanges and sellers dealing with the digital currency.
 
"We've been contacted by folks who are doing various things in this space to see if there's opportunities for us to help enable greater functionality for some of these [Bitcoin companies]," said Peter Ohser, MoneyGram's senior vice president of U.S. and Canada. "But we've not committed and don't have any imminent plans to announce anything."
 
While MoneyGram currently has no direct relationships with Bitcoin companies, its money-transfer agents can already help people complete the purchase of bitcoins if they have made arrangements in advance with a payment-processing company called BitInstant LLC.

BitInstant has a deal with a company called ZipZap Inc., which in turn has a relationship with MoneyGram to allow consumers to pay bills and purchase goods from online merchants with cash. That means a BitInstant customer can place an order for bitcoins on its website and then complete the transaction at a participating MoneyGram location with cash, the same way they would pay a bill.
 
The bitcoins purchased through such transactions can't be used to make a MoneyGram money transfer; rather, they are added to a person's BitInstant account, allowing the person to move the bitcoins to trading exchanges and other companies that accept the virtual currency.
 
Because a large portion of Western Union's and MoneyGram's customers initiate or receive remittances in cash, new digital payments services are often viewed as threats to their business. But in its current state, Bitcoin doesn't pose much of a threat, executives and analysts say, noting that the currency isn't widely accepted as payment and its value is extremely volatile, limiting its appeal.
 
So far in April, the value of one Bitcoin unit has ranged from $50.01 to $266, according to bitcoincharts.com. The Bitcoin market is valued at $1.03 billion, according to the site.
 
MoneyGram's Mr. Ohser noted that bitcoins are of limited use to many of the company's customers. About 95% of consumer money transfers done through its agents involve senders and receivers using cash.
 
"Remittances go to pay for housing and for food and for maintaining your family," he said. "If you're sending to a rural part of Mexico, my guess is that the merchant is not going to be accepting bitcoins. They want pesos."

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[BitcoinAshley]

Press press press! Ya think it's about time for people to start trading on news again?

Colbert bump + Western Union/Moneygram bump + MetART bump + OKCupid bump = go bitcoin!!!

[Pangia]

Can you please cut and paste the article.

[bitcool]

Press press press! Ya think it's about time for people to start trading on news again?

Colbert bump + Western Union/Moneygram bump + MetART bump + OKCupid bump = go bitcoin!!!

God, It's SO hard trying not to get excited !!!

[ramus313]

this is exciting news!

[jmw74]

Western Union is going to do what with bitcoin now?

What can they possibly do, other than lay off most of their employees, and use their existing locations to house bitcoin ATMs?

[datafish]

Western Union is going to do what with bitcoin now?

What can they possibly do, other than lay off most of their employees, and use their existing locations to house bitcoin ATMs?

Lol, this.

[bitcool]

Western Union is going to do what with bitcoin now?

What can they possibly do, other than lay off most of their employees, and use their existing locations to house bitcoin ATMs?

Actually, if they position themselves well, their locations can become mini exchanges all over the world.... So instead of exchanging btc at street corner, you go to a WU branch.

[justusranvier]

Actually, if they position themselves well, their locations can become mini exchanges all over the world.... So instead of exchanging btc at street corner, you go to a WU branch.

The vast majority of the kiosks they have all over the world are outside US jurisdiction, or at least would be if they weren't processing dollars.

A foreign subsidiary, for example, could receive BTC and give out local currency without being bothered in the slightest by the regulations and limitations associated with moving dollars internationally.

[jmw74]

Western Union is going to do what with bitcoin now?

What can they possibly do, other than lay off most of their employees, and use their existing locations to house bitcoin ATMs?

Actually, if they position themselves well, their locations can become mini exchanges all over the world.... So instead of exchanging btc at street corner, you go to a WU branch.

If I want to wire money overseas (say Cyprus), I could go to a bitcoin ATM here, insert $100.  It either asks me for a password that the recipient already knows, or it just gives me a code that the recipient can use to redeem.  The recipient in Cyprus goes to a bitcoin ATM, inputs the password or code, receives euros.  As far as I know, the bitcoin ATMs we've seen the demo videos of can already do this (perhaps minus some minor software tweaks to accept and produce passwords or codes that map to bitcoin keys). 

So what exactly does Western Union have to offer?  Just a place to put the machine.
 

[justusranvier]

So what exactly does Western Union have to offer?

Hundreds of thousands of locations all  over the world where people are already accustomed to sending and receiving money via a pre-existing network of affiliates all over the world.

[Operatr]

I smell a fresh exchange hike coming on 

[BTC Books]

So what exactly does Western Union have to offer?

Hundreds of thousands of locations all  over the world where people are already accustomed to sending and receiving money via a pre-existing network of affiliates all over the world.

AND solid, unimpeachable connections to every bank and financial regulating body in the world.

[Peleus]

I'm confused.

What could WU do with Bitcoin that they couldn't already do with fiat?

Wouldn't they have a huge float in an account in each currency and just arbitrage between the accounts to keep them level?

Why would it be necessary to go Fiat *Location 1* > BTC *Tranferring* > Fiat *Location 2* when they can just go Fiat > Fiat

[jmw74]

So what exactly does Western Union have to offer?

Hundreds of thousands of locations all  over the world where people are already accustomed to sending and receiving money via a pre-existing network of affiliates all over the world.

I'm sure their stockholders will be thrilled to have their revenue cut by 99%.

[BTC Books]

I'm confused.

What could WU do with Bitcoin that they couldn't already do with fiat?

Wouldn't they have a huge float in an account in each currency and just arbitrage between the accounts to keep them level?

Why would it be necessary to go Fiat *Location 1* > BTC *Tranferring* > Fiat *Location 2* when they can just go Fiat > Fiat

You're missing some information about how money works.

It is NEVER Fiat -> Fiat (Dollars in New York to GBP in London, for example).  Money takes a circuitous route from country to country with little fees at every stop, and the people who control that route are the banks.  They make their handshake deals...

Bitcoin takes that fee structure away from the banks, and gives it (for much less, assumptively) to the most efficient forex exchanger.

It would take a company at least the size of WU to pull it off.  There's nothing in bitcoinland that's even remotely close.

[gollum]

I'm confused.

What could WU do with Bitcoin that they couldn't already do with fiat?

Wouldn't they have a huge float in an account in each currency and just arbitrage between the accounts to keep them level?

Why would it be necessary to go Fiat *Location 1* > BTC *Tranferring* > Fiat *Location 2* when they can just go Fiat > Fiat

Western Union should look at bitcoin at an oppurtunity instead of a threat. Western Union + Bitcoin would be the perfect marriage.
They got dealers around the world that can thandle cash and financial muscles and would become the no 1 place for people to convert between fiat and bitcoin in person.

[101111]

They can see a disruptive tech that could perhaps quickly undermine them. Better to adopt it than fight it. They have the brand ( = trust,  yes intrinsic value!) and network/physical resources. Cost structure may fall so perhaps profits increase despite lower fees. Aim to become a major player in the bitcoin ecosystem with blue sky potential.

[gollum]

They can see a disruptive tech that could perhaps quickly undermine them. Better to adopt it than fight it. They have the brand ( = trust,  yes intrinsic value!) and network/physical resources. Cost structure may fall so perhaps profits increase despite lower fees. Aim to become a major player in the bitcoin ecosystem with blue sky potential.

We are talking a lot about someone trustworthy that should issue digital dollar IOUs that we can trade against bitcoin - Western Union might be the missing link here, they can take the role as the trustworthy IOU issuer.

[101111]

totally agree with you gollum, and btw you were great in that hobbit movie

[Peleus]

I'm confused.

What could WU do with Bitcoin that they couldn't already do with fiat?

Wouldn't they have a huge float in an account in each currency and just arbitrage between the accounts to keep them level?

Why would it be necessary to go Fiat *Location 1* > BTC *Tranferring* > Fiat *Location 2* when they can just go Fiat > Fiat

You're missing some information about how money works.

It is NEVER Fiat -> Fiat (Dollars in New York to GBP in London, for example).  Money takes a circuitous route from country to country with little fees at every stop, and the people who control that route are the banks.  They make their handshake deals...

Bitcoin takes that fee structure away from the banks, and gives it (for much less, assumptively) to the most efficient forex exchanger.

It would take a company at least the size of WU to pull it off.  There's nothing in bitcoinland that's even remotely close.

Hmm, I figured that they would have essentially a "float" in most major denominations and use internal account methods to track the money and authorize it from each account. That way when you send money say from the UK to the US, the money doesn't actually get transferred from GBP to USD (and have the associated fee's), it would simply be a deposit in GBP and a withdrawl in USD, later to be cancelled out (on average) by someone sending money from the US to the UK.

[Minor Miner]

The best part of this would be the end of Gox and the mickey mouse "exchanges".   WU would provide the legitimacy and the volume required that would get bitcoin on a real exchange with the other currencies.   Gox would be irrelevant overnight and we could all get feeds that actually work.

[BTC Books]

Hmm, I figured that they would have essentially a "float" in most major denominations and use internal account methods to track the money and authorize it from each account. That way when you send money say from the UK to the US, the money doesn't actually get transferred from GBP to USD (and have the associated fee's), it would simply be a deposit in GBP and a withdrawl in USD, later to be cancelled out (on average) by someone sending money from the US to the UK.

You're re-inventing the Islamic Halawa transfer system:

https://en.wikipedia.org/wiki/Hawala

Money in the West works differently.  We can be open about charging interest, for example.

[Peleus]

Hmm, I figured that they would have essentially a "float" in most major denominations and use internal account methods to track the money and authorize it from each account. That way when you send money say from the UK to the US, the money doesn't actually get transferred from GBP to USD (and have the associated fee's), it would simply be a deposit in GBP and a withdrawl in USD, later to be cancelled out (on average) by someone sending money from the US to the UK.

You're re-inventing the Islamic Halawa transfer system:

https://en.wikipedia.org/wiki/Hawala

Money in the West works differently.  We can be open about charging interest, for example.

Thanks for the link. I'm not necessarily advocating it in any way, I just always thought that it would be the type of system WU would use considering it can "trust" itself, and the Hawala agents (in this case) are simply bank accounts it owns in different countries. Unless one countries bank account gets quite low (Ie. lots of people sending money to the US but no one sending it out) they would be avoiding international transaction fee's via this method.

[gollum]

Hmm, I figured that they would have essentially a "float" in most major denominations and use internal account methods to track the money and authorize it from each account. That way when you send money say from the UK to the US, the money doesn't actually get transferred from GBP to USD (and have the associated fee's), it would simply be a deposit in GBP and a withdrawl in USD, later to be cancelled out (on average) by someone sending money from the US to the UK.

You're re-inventing the Islamic Halawa transfer system:

https://en.wikipedia.org/wiki/Hawala

Money in the West works differently.  We can be open about charging interest, for example.

Western Union is probably already using some kind of "Halawa" internally.

[BTC Books]

You're re-inventing the Islamic Halawa transfer system:

https://en.wikipedia.org/wiki/Hawala

Money in the West works differently.  We can be open about charging interest, for example.

Thanks for the link. I'm not necessarily advocating it in any way, I just always thought that it would be the type of system WU would use considering it can "trust" itself, and the Hawala agents (in this case) are simply bank accounts it owns in different countries. Unless one countries bank account gets quite low (Ie. lots of people sending money to the US but no one sending it out) they would be avoiding international transaction fee's via this method.

They avoid their fair share, I suppose.

You should read the Wiki article on WU - it's a fascinating company:  forward-thinking, but still steeped in a certain amount of internal tradition.  I'm going to keep my eyes open for a good book on their history.  I do run across the odd book every now and then.  

[Minor Miner]

You're re-inventing the Islamic Halawa transfer system:

https://en.wikipedia.org/wiki/Hawala

Money in the West works differently.  We can be open about charging interest, for example.

Thanks for the link. I'm not necessarily advocating it in any way, I just always thought that it would be the type of system WU would use considering it can "trust" itself, and the Hawala agents (in this case) are simply bank accounts it owns in different countries. Unless one countries bank account gets quite low (Ie. lots of people sending money to the US but no one sending it out) they would be avoiding international transaction fee's via this method.

They avoid their fair share, I suppose.

You should read the Wiki article on WU - it's a fascinating company:  forward-thinking, but still steeped in a certain amount of internal tradition.  I'm going to keep my eyes open for a good book on their history.  I do run across the odd book every now and then.  

read the prospectus from when they were spun out of FDC, it is interesting it wasn't that long ago.    or their annuals.  you know that if you call IR of any public company and request hard copies that they have to send you their annual right?    I do not understand why bitcoins would really help them since they basically take money, and then let you (not you since it goes to someone else) withdraw the money at another location.   so why use bitcoins for something they already do over their own network?

[Peleus]

Yeah, I know it's an assumption, but if they are using some form of internal Hawala I don't see how BTC would be useful for them.

[BTC Books]

...so why use bitcoins for something they already do over their own network?

Two reasons, I would venture to say:

One:  to fill the obvious (and obviously profitable) void in bitcoinland on the exchange front.  And

Two:  To preempt (to forestall or prevent (something anticipated) by acting first; preclude; head off), by integration, what is quite likely to be a successful competitor.

As I mentioned earlier, they're a very forward-thinking company.

[Minor Miner]

...so why use bitcoins for something they already do over their own network?

Two reasons, I would venture to say:
One:  to fill the obvious (and obviously profitable) void in bitcoinland on the exchange front.  And
Two:  To preempt (to forestall or prevent (something anticipated) by acting first; preclude; head off), by integration, what is quite likely to be a successful competitor.
As I mentioned earlier, they're a very forward-thinking company.

just to nit pick.   there is no need for exchanges (the concept is silly for the long term) as BTC will trade on an FX exchange when demand merits which will eliminate the need for gox et al.   But they would be a broker or market maker which could be great.

[Peleus]

...so why use bitcoins for something they already do over their own network?

Two reasons, I would venture to say:
One:  to fill the obvious (and obviously profitable) void in bitcoinland on the exchange front.  And
Two:  To preempt (to forestall or prevent (something anticipated) by acting first; preclude; head off), by integration, what is quite likely to be a successful competitor.
As I mentioned earlier, they're a very forward-thinking company.

just to nit pick.   there is no need for exchanges (the concept is silly for the long term) as BTC will trade on an FX exchange when demand merits which will eliminate the need for gox et al.   But they would be a broker or market maker which could be great.

To be fair, given the time this will take (long term), there could be quite a profitable short - medium term given a lot of the infrastructure is already there for them.

[Hfleer]

They can either embrace Bitcoin or die

[deepceleron]

This is like when you could order telegrams over the Internet from Western Union. It is hard to make a business model by embracing the thing that makes you irrelevant.

[psybits]

This has been discussed here and I recommend anyone looking for more info to take a look

https://bitcointalk.org/index.php?topic=179943.0

[BTC Books]

This is like when you could order telegrams over the Internet from Western Union. It is hard to make a business model by embracing the thing that makes you irrelevant.

That was a thing?  Seriously?

I'm shocked that I missed it...

[gollum]

This is like when you could order telegrams over the Internet from Western Union. It is hard to make a business model by embracing the thing that makes you irrelevant.

No I think its a win-win situation for both bitcoin users and Western Union.

Many of Western Unions customers are people from poor countries working in richer countries and they send money to their family in the home country.
With the progress in developing countries and internet penetration around the globe Western Unions clientbase will decrease when people find easier and cheaper ways to send money home.
So this is an opportunity for Western Union to take the step to the internet age of crypto currencies, or become as obsolete as telegrams.

It is beneficial for bitcoin as well if Western Union "franchises" bitcoin, the moment they do so 7 billion people will be able to buy, sell or transfer bitcoins even if they dont have internet or mobile phones.
Without Western Union this development might take decades to reach 7 billion people.

[Spjuth]

I think it is brilliant. WU have offices all over the world. All they need to do is to exchange bitcoin for fiat and vice versa.

So if someone in California wants to send money to a relative in Indonesia, he goes to WU and buys bitcoins (or he buys them from wherever since he lives in California). He then sends them to his relative in Indonesia who in turn sells them for local fiat at WU. So all WU does is guarantee liquidity all over the globe. Of course they can also help out with creating wallets for people in rural areas without computers/mobile phones/internet.

If Western Union would start doing this they will guarantee their survival and help the Bitcoin community and the world!

[Tirapon]

I think it is brilliant. WU have offices all over the world. All they need to do is to exchange bitcoin for fiat and vice versa.

So if someone in California wants to send money to a relative in Indonesia, he goes to WU and buys bitcoins (or he buys them from wherever since he lives in California). He then sends them to his relative in Indonesia who in turn sells them for local fiat at WU. So all WU does is guarantee liquidity all over the globe. Of course they can also help out with creating wallets for people in rural areas without computers/mobile phones/internet.

If Western Union would start doing this they will guarantee their survival and help the Bitcoin community and the world!

Now this would be a great idea, something I hadn't even considered.

[virtualmaster]

Western Union would be a great bitcoin exchange if receives and sends bitcoins and could help out the bitcoin community from the actual exchange misery.

[gollum]

I hope someone at Western Union see this post and realizes that they cannot miss this one time opportunity with bitcoin.

WU can right now create a huge market for web shopping from developing countries, countries where most people do not have access to credit cards.

Even people with credit cards might prefer to use bitcoin when shopping online since it is more secure to spend bitcoin than use VISA card online.
What people need is easy methods for the exchange of cash to bitcoin through a dealer, and WU can offer that service.

[pekv2]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

[BTC Books]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

 

There's something you want to buy that isn't here:

https://www.bitcoinstore.com/

 

[justusranvier]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

 

There's something you want to buy that isn't here:

https://www.bitcoinstore.com/

 

It might be there, but good luck finding it.

[thebaron]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

 

There's something you want to buy that isn't here:

https://www.bitcoinstore.com/

 

It might be there, but good luck finding it.

Or finding it in stock.

I understand that it's in "beta" and all. But when you try and help a friend find a laptop, and you both just give up and order it elsewhere...

[BTC Books]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

 

There's something you want to buy that isn't here:

https://www.bitcoinstore.com/

 

It might be there, but good luck finding it.

Or finding it in stock.

I understand that it's in "beta" and all. But when you try and help a friend find a laptop, and you both just give up and order it elsewhere...

The thing is - as I understand it - that bitcoinstore has the mission of putting itself out of business.

Their stated goal is to show the NewEggs and Microcenters that bitcoin is something they should start to offer - and they're doing that by trying to prove that they can take enough business away from the big players to hurt.

So if you want NewEgg or Tiger to start accepting bitcoin, start using bitcoinstore.  I do.  Believe me, Roger will see to it that NewEgg has every sales report dangled in front of their faces...

And yeah - it isn't the prettiest or easiest to use site.  Oh well.

[Minor Miner]

Great point.   Use the SITE so that someday NewEgg and Amazon will start accepting this.   Maybe he could make a website that bascially just sells NewEgg and Amazon gift cards and then show the results?   I would be willing to help with the capital that would be required to get stock.

[BTC Books]

Great point.   Use the SITE so that someday NewEgg and Amazon will start accepting this.   Maybe he could make a website that bascially just sells NewEgg and Amazon gift cards and then show the results?   I would be willing to help with the capital that would be required to get stock.

The problem with gift cards (aside from their not being in bitcoin natively) is that you wind up paying more if you shop at NewEgg with one.

Bitcoinstore is selling the stuff at zero markup, so it's cheaper.  It must hurt a little extra for the guys at NewEgg to see those profits going up in smoke.

Roger's a smart guy.

[JackH]

This is quite a big deal indeed. Lets hope that they will add this to their portfolio.

[World]

No I think its a win-win situation for both bitcoin users and Western Union.

Many of Western Unions customers are people from poor countries working in richer countries and they send money to their family in the home country.
With the progress in developing countries and internet penetration around the globe Western Unions clientbase will decrease when people find easier and cheaper ways to send money home.
So this is an opportunity for Western Union to take the step to the internet age of crypto currencies, or become as obsolete as telegrams.

It is beneficial for bitcoin as well if Western Union "franchises" bitcoin, the moment they do so 7 billion people will be able to buy, sell or transfer bitcoins even if they dont have internet or mobile phones.
Without Western Union this development might take decades to reach 7 billion people.

+ Other services that will be gradually rise around the bitcoin protocol

[stayeduptolate]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

I wish newegg would!

[psybits]

Damnit, I wish other places would jump on board like "NEWEGG,Tigerdirect,microcenter". We need a large authorized dealer hardware store to accept bitcoin. ugh.

Good news to hear that WU might jump on board, but we need more places too, not these raggedy website shops like bitcoin store.

I wish newegg would!

Bitcoinstore is pretty amazing actually - they stock so many products! But yes some more big players on board is definitely needed and I am sure it will happen in good time - remember anyone can send an e-mail to a company explaining why they should accept Bitcoin I think some people are doing this daily...

[Elwar]

Or just find the product you want and order it on bitspend.

[pekv2]

Or just find the product you want and order it on bitspend.

Yea, I'd rather order it directly from the authorized dealer them self. I questioned bitspend about how RMA's are delt with for hardware, and was never answered, so I am kinda iffy about that and will just probably order newegg gift cards, that way the invoice is mine, if I ever have to deal with an RMA like I had recently.

[klaus]

At the Moment (due to the US$ Price) we are bigger than Western Union in Daily Transaction Volume (US$) !





Source:

http://coinometrics.com/bitcoin/btix

[e4xit]

Nice bump!

[freet0pian]

At the Moment (due to the US$ Price) we are bigger than Western Union in Daily Transaction Volume (US$) !

It'd be interesting to know how much of that is used for remittance. 0.5, 1, 10%?

[bitcoinminer]

It would be interesting to see how much of that are the same coins being turned over.  Nobody is day trading western union.  So to say you're bigger than western union is kind of silly.  Is it 239 million worth of transactions?  Or 1 million worth, 239 times?  Who knows.

Compare it to a particular stock's volume on any given day, that is a better and more reasonable comparison to make.

[Carlton Banks]

"Bitcoin considers usurping Western Union" would be more like it

[bitcoinminer]

Man sends $500 in Western Union.  Arrives 10 minutes later as $100.  Man sends $100 to his Auntie who now has $1000 10 minutes later.

I can't see what could possibly be wrong with this business model.

[gollum]

Man sends $500 in Western Union.  Arrives 10 minutes later as $100.  Man sends $100 to his Auntie who now has $1000 10 minutes later.

I can't see what could possibly be wrong with this business model.

Auntie sends 1000$ to his son in BTC, that 1000$ is worth 600$ 10 minutes later...
BTC will not function as a payment system or currency until its value stabilizes compared to real life assets such as fiat and commodities.
Right now BTC is only a speculative asset because of the extreme volatility in BTC/USD.

[rbdrbd]

I'm confused.

What could WU do with Bitcoin that they couldn't already do with fiat?

Wouldn't they have a huge float in an account in each currency and just arbitrage between the accounts to keep them level?

Why would it be necessary to go Fiat *Location 1* > BTC *Tranferring* > Fiat *Location 2* when they can just go Fiat > Fiat

Western Union should look at bitcoin at an oppurtunity instead of a threat. Western Union + Bitcoin would be the perfect marriage.
They got dealers around the world that can thandle cash and financial muscles and would become the no 1 place for people to convert between fiat and bitcoin in person.

Exactly. Their dealer network means maintaining the same experience for their customers, while if they utilize BTC as an intermediate step for the transfers, they may be able to reduce the regulatory headache/overhead/cost by a good amount.

[gollum]

I'm confused.

What could WU do with Bitcoin that they couldn't already do with fiat?

Wouldn't they have a huge float in an account in each currency and just arbitrage between the accounts to keep them level?

Why would it be necessary to go Fiat *Location 1* > BTC *Tranferring* > Fiat *Location 2* when they can just go Fiat > Fiat

Western Union should look at bitcoin at an oppurtunity instead of a threat. Western Union + Bitcoin would be the perfect marriage.
They got dealers around the world that can thandle cash and financial muscles and would become the no 1 place for people to convert between fiat and bitcoin in person.

Exactly. Their dealer network means maintaining the same experience for their customers, while if they utilize BTC as an intermediate step for the transfers, they may be able to reduce the regulatory headache/overhead/cost by a good amount.

Yes, they can use BTC instead of bank transactions, but that will require:
a) BTC / USD dont fluctuate more than a few percent per day (not 30-40% per day!)
b) Ability to hedge the price of BTC/USD (options, futures and ability to go short)
c) Bitcoin can handle larger amounts of transactions per second than today

[moni3z]

They could also just dev a mobile currency backed by bitcoin. Fully automatic with no banks involved, would be epic. I pay out a bunch of money to various people all over the world, once they find out they can just meet somebody in a cafe or mall and push a button on their phone to trade BTC and get cash in hand none of them want to use WU anymore

[bitcoinminer]

Man sends $500 in Western Union.  Arrives 10 minutes later as $100.  Man sends $100 to his Auntie who now has $1000 10 minutes later.

I can't see what could possibly be wrong with this business model.

Auntie sends 1000$ to his son in BTC, that 1000$ is worth 600$ 10 minutes later...
BTC will not function as a payment system or currency until its value stabilizes compared to real life assets such as fiat and commodities.
Right now BTC is only a speculative asset because of the extreme volatility in BTC/USD.

...And then keep in mind certain affiliate companies of Western Union build hardware that frequently and suddenly make it dramatically more difficult to acquire transfer forms (ASIC mining).

[bryant.coleman]

This will never happen. If Western Union accept BTC, then banks, VISA/MASTER and Paypal will boycott it.