Hikmet Ersek, CEO for Western Union recently criticised Bitcoin and other Cryptocurrencies, claiming that they are not suitable for use in developing countries, and are not safe for cross-border transactions.
This announcement comes at a time when other money-transfer companies, such as PayPal, have begun to enforce rigid sanctions in an attempt to amputate the Crypto community from legitimate trading mediums.
Western Union is primarily a company that allows the transfer of money from person to person, as well as money orders, business payments and commercial services. From its creation in 1851, Western Union developed a monopoly on Telegrams, up until 2006, when their decline in popularity saw them abandon telegrams entirely.
Hikmet’s comments, as one would expect, cite consumer protection as their primary concern.
“Without continued enhancements to ensure consumer protection… consumers and businesses will continue to gravitate to cash” –Hikmet Ersek
There are three main points that need be looked at when considering Hikmet’s critique; Firstly, it is not explicitly explained how exactly a currency which circumvents the need to be converted into country-specific currencies when being exchanged over geographical borders, is unsuitable for cross-border transactions.
Secondly, as anybody who frequently uses online marketplaces will tell you, Western Union has developed a notorious reputation for use by scammers, owing to the inability of Western Union to recover any money lost to overseas scammers (hence the reason it is banned from use on eBay, and contra-indicated on almost any legitimate website). Western Union, to their credit, have themselves advised customers not to send money to anybodythey do not know personally.
“When you are dealing with payments of any kind, trust is a major factor” –Hikmet Ersek
The third point, and perhaps the most important one, is the glaringly obvious threat that the propagation of trade in Cryptocurrency poses to companies like Western Union, whom receive a significant proportion of their profits from cross-border transaction fees...
...
Read more at:
http://www.coinchilli.com/profit-protection-clumsily-disguised-as-consumer-safety/
J.C Axe
