Western Union Mulls Using Bitcoin

Todd Wasserman2013-04-02 16:31:37 UTC

Western Union, a 162-year-old firm that made its name by offering telegraphs, is considering embracing the digital age by accepting Bitcoin and other types of digital payment methods, according to a report.

The Wall Street Journal reports that the company is interested in getting a slice of online transactions like gaming and telephony. "If you want to top up a Skype account or add value to an online gaming platform, those are the kinds of partnerships I’m working to develop,” David Thompson, EVP of global operations and CIO at Western Union told the WSJ. Western Union reps could not be reached for further comment.

The company, which stopped offering telegrams in 2006, provides person-to-person money transfers and lets consumers pay their bills online. In 2008, Western Union also introduced a mobile service that enabled cash-to-mobile, mobile-to-cash and mobile-to-mobile transfers. In the former cases either the send or receiver has to visit a physical Western Union location. With the latter, a mobile-enabled account can send funds to a recipient with a mobile-enabled account.

Bitcoin, an Internet-based currency system, was introduced in 2009. The value of Bitcoins are held in check by a process known as mining. Under the system, computers connected to the network (known as miners) aim to find the solution to a certain mathematical problem. If they successfully solve the problem, a new block is created. Until December 2012, the value of each block was 50 BTC (Bitcoins). Every four years, the value of solving a block is halved. Though it's unlikely that Bitcoin could become a de facto world currency, the idea recently gathered some steam when a Bitcoin-based ATM opened up in economically troubled Cyprus.

Image courtesy of Flickr, Swanksalot

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