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   991

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. 

Kraken to Raise $13.5 Thru BnkToTheFuture

2,263 people with an average investment of $100.000 took part in crownfunding campaign, which became record for the platform
25 June 2019   164

The US Bitcoin exchange Kraken raised $ 13.5 million through the sale of private equity through the investment platform BnkToTheFuture (BF). This was the most successful round of financing from individual investors in the history of BF, reports CoinDesk.

So, in total Kraken crowdfunding campaign was attended by 2,263 people with an average investment of $ 100 thousand. The funds raised are probably used by the exchange to make new acquisitions.

It is noteworthy that BF created a subsidiary, which became the recipient of individual investments in order to subsequently act as a single investor for Kraken. This allowed the exchange to bypass the requirements of the US Securities and Exchange Act and not to go to an IPO.

It is noteworthy that Kraken initially intended to raise $ 10.2 million, but the demand for its shares turned out to be higher and the exchange extended the fundraising period.

According to Kraken's own estimates, its capitalization is $ 4 billion.

Earlier this year, the exchange also acquired Crypto Facilities, a trading platform for cryptocurrency derivatives, expanding the range of services offered.