Western Union Partners with $75B Bank for US CBDC Pilot Study - Payments Collaboration

Payments Giant Western Union Collaborates with $75B Bank to Study US Central Bank Digital Currency (CBDC) Effects.

Western Union and Philippines-based BDO Unibank Join Forces to Assess US CBDC Impact on Overseas Remittances

In a recent press release, Western Union and BDO Unibank from the Philippines announced their collaboration to explore the implications of a US central bank digital currency (CBDC) or a digital asset issued and backed by the Federal Reserve on overseas remittances.

The pilot study, in partnership with a leading technology-driven global payments player, examined the potential advantages of utilizing CBDCs for cross-border remittances. The findings, featured in the Digital Dollar Project's whitepaper, highlighted numerous benefits, including reduced risk due to instant settlement across multiple currencies, cost optimization, and improved security and transparency.

Kevin Mole, the global head of digital assets at Western Union, emphasized the advantages for customers and financial institutions identified in the pilot study, setting the stage for further evaluations on the feasibility and practicality of utilizing retail CBDCs for cross-border remittances.

However, a recent survey revealed that a significant majority of American citizens oppose a CBDC due to concerns about government oversight on their spending habits. The poll indicated that 74% of respondents would oppose a CBDC if it meant the government could control their spending, while 68% would oppose it if their spending was tracked. Additionally, 59% expressed opposition if a CBDC allowed the state to freeze the bank accounts of American protesters. The research showed only 16% of US adults supporting the issuance of a CBDC.

Aug 05, 2023