[swang]

Where is the appeal in a WU created digital currency?

1. This will probably mean WU wants a cut of all transactions in any digital currency they create... for life. 2. No benefit over fiat currency? 3. Not anonymous. 4. All the "coins" are controlled by WU.

[notahacker]

A WU created digital currency would be convertible to cash, on demand, at one's family's local Western Union agent in their remote village in Africa, so they can buy food and petrol with it when they need it. Much of this target market would never have had any access to any form of online payment service before.

And all the coins being "controlled" by a regulated, profitable multinational business with a lot to lose from scamming people (and probably tied to the dollar) is a lot more reassuring than a software protocol administered by a mysterious foreign foundation - transaction fees or no transaction fees.

Not every product has to be an appealing proposition to US-based early adopters to be phenomenally useful.

[olefoo]

Perhaps they are counting on their 'brand equity' to serve as a competitive advantage?

I'm similarly dubious as to their chances of success with the initial population ( the part of the market for digital currencies that overlaps with bitcoin traders ), however they do have a global retail presence and a brand that is recognizable even if it's trustworthiness is suspect.