Western Union CEO: Crypto won`t be set in Near Future

Western Union Co. CEO Hikmet Ersek claimed the global money transfer service will not add a cryptocurrency transfer to its services anytime soon
14 June 2018   1123

The head of the largest money transfer company in the world speaking at the Economic Club of New York, explained that the clients lean toward fiat money over cryptocurrencies because of the possibility for broader usability of hard assets like cash. 

The consumers tell us what they want. People aren’t paying their hospital bills in cryptos.
Hikmet Ersek,
CEO, Western Union

Ersek also mentioned central banks’ totally skeptical position relatively to  cryptocurrencies as a reason not to expand their services to digital assets. As Ersek declared, central banks are unwilling refuse of the control over their local currency to a digital or decentralized alternative. He stated that “nations are built on flags, constitutions, borders and currencies,” explaining that no central bank home to a gain currency would consider giving up that type of control.

Western Union last year in December started a campaign against wire transfer transactions including cryptocurrency exchanges because of the firm’s internal regulations. The company in a post by a Reddit user, affirmed crypto exchange Kraken that it would not process a transaction related to digital money because it was against internal rules.

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.
Hikmet Ersek
CEO, Western Union

It was also confirmed by Western Union in February that it was testing transactions with the application of Ripple’s blockchain-based settlement system. 

ETH May Become Security After POS Migration,- CFTC

At the moment, according to the head of CFTC, Ethereum is more likely an exchange commodity rather than a security, but it may change 
14 November 2019   142

The head of the Commission for derivatives trading (CFTC) Heath Tarbert expressed the opinion that cryptocurrencies involved in the cryptocurrency using the Proof-of-Stake algorithm can be considered as securities. It is reported by Decrypt.

Earlier, the head of the CFTC said that in its current form, Ethereum is more likely an exchange commodity rather than a security. However, I am sure Tarbert, over time, the status of an asset may change. For example, a security can become a commodity and vice versa.

We are thinking carefully about it.
 

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

The popular Proof-of-Stake (PoS) algorithm involves the use of “stake” as a resource that determines which particular node receives the right to mine the next block. Higher chances to generate the next block are received by the node with greater balance.

Recently, staking services that promise customers a return on investment in PoS assets have become popular. According to some experts, these services could potentially violate the provisions of the Howie test, such as having a joint venture, as well as an investment contract involving two parties.

At the same time, Tarbert spoke out against an aggressive approach to regulating cryptocurrencies, which could suppress innovation and hinder the strengthening of the US position in the innovation sphere.

Clarity and consistency is the first step to leadership.
 

Heath Tarbert

Chairman, U.S. Commodity Futures Trading Commission

Earlier, Heath Tarbert expressed the view that regulated futures based on Ethereum will soon appear on the market.