There’s big news in the world of finance as Western Union is making important partnerships.

The latest collaboration involves a $75 billion bank and the study of a US central bank digital currency (CBDC).

Potential use of a CBDC

In a recent press release, it was announced that Western Union and BDO Unibank from the Philippines are working together to investigate how the use of a US CBDC would affect international money transfers. This would involve a digital asset that is issued and supported by the Federal Reserve.

“The pilot study, executed in concert with a leading, technology-driven global payments player, evaluated the potential benefits of utilizing CBDCs for cross-border remittances.”

In a recent study published by the Digital Dollar Project, implementing a CBDC was found to have numerous benefits.

These include reducing risk due to instant settlement across multiple currencies, optimizing costs, and enhancing security and transparency.

Kevin Mole, the global head of digital assets at Western Union, stated that their pilot study identified several advantages for customers and financial institutions.

This lays the groundwork for ongoing evaluations of the feasibility and viability of utilizing retail CBDCs for cross-border remittances.

However, earlier this year, a survey revealed that the majority of American citizens opposed a CBDC. This is because it would give the federal government oversight on their spending habits.

The poll found that 74% of respondents would oppose a CBDC if it means that the government could control how they spend their money.

Additionally, 68% of respondents said they would oppose it if it meant that the government could track how they spend their money.

American people vs banks

According to CBS News, there has been a rise in the number of banking customers who have faced difficulties in accessing their own funds, some for extended periods of time.

However, when these cases are brought to public attention through the media, disputes are often resolved promptly.

This suggests that many Americans are seeking help and guidance from news sources in their ongoing struggles with their banks.

The report highlights the challenges faced by Charlotte Warren, Peter Spyropolous, and Gene Krichevsy, all of whom found themselves in disputes with their banks after being unable to access their accounts.

“The trio of bank customers got caught up in maddening bureaucracy, each in a separate case.”

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