Payments giant Western Union has teamed up with a $75 billion bank to study the effects of a United States Central Bank (CBDC) digital currency.
According to a new press release, Western Union and Philippines-based BDO Unibank are teaming up to explore how the implementation of a US CBDC, or digital asset issued and backed by the Federal Reserve, would affect overseas money transfers.
“The pilot study, conducted in consultation with a leading technology-driven global payments player, evaluated the potential benefits of using CBDCs for cross-border remittances.”
The study, published in the Digital Dollar Project white paper, highlighted many benefits of implementing a CBDC, including the reduction of risk from multi-currency instant settlement, optimized costs, and enhanced security and transparency.
As stated by Kevin Mole, global head of digital assets at Western Union,
“Through this pilot study, Western Union has identified several benefits for customers and financial institutions, laying the groundwork for ongoing evaluations of the feasibility and viability of using retail CBDCs for cross-border remittances.”
Earlier this year, however, a survey found that the vast majority of U.S. citizens oppose a CBDC because it would give the federal government oversight over their spending habits.
At the time, the poll found that 74% of respondents would be against a CBDC if it meant the government could control how they spend their money, while 68% said they would be against it if it meant the government could monitor how they spend their money. they spend their money. money.
In addition, 59% of those polled said they would oppose a CBDC if it allowed the state to freeze US protesters’ bank accounts. The survey also found that only 16% of US adults support the issuance of a CBDC.
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Image generated: Midway through the journey