Amazon AMZN -0.3%’s foray into cryptocurrency exploration has caused an explosion of activity within the crypto space, as evidenced by reports. They recently posted an open job position looking for someone with expertise in digital currencies and blockchains to lead this effort.
Created a digital token to pay for their products and services could save them money on transfer fees, currency fluctuations and bank charges.
What is Amazon’s Crypto Token (AMZ)?
The Amazon Coin is a digital token that can be redeemed on Amazon Appstore for apps, games and in-app items. Built upon Ethereum blockchain technology, this coin offers various benefits such as reduced transaction fees, security safeguards and mining rewards.
Amazon has expressed interest in crypto and NFTs and hired a “Digital Currency and Blockchain Product Lead.” However, the company has not released its own cryptocurrency or token; some YouTubers have created fake Amazon crypto token presales using its name and branding to mislead investors into investing.
To buy AMZ, the ideal way is through a decentralized exchange (DEX). Additionally, base currencies may be purchased and then swapped on to AMZ on DEXs. Make sure your AMZ is kept safe by keeping its seed phrase secure in a wallet and being aware of fraudsters who often target new crypto projects or presale sales.
Will Amazon Accept CBDC’s?
Amazon Coin may not come out anytime soon, but that doesn’t mean they have abandoned it as an idea. A job posting for a Head of Digital Currency and Blockchain indicates they may be actively exploring how they could launch it into market.
Amazon could take steps to minimize fees in its purchase and sale transactions by creating its own stablecoin, Amazon Coin. By paying suppliers with Amazon Coin instead of dollars when bills become due, both sides wouldn’t be exposed to fluctuations or fees associated with currency conversion.
This new coin may be used for various purposes, from storing value to purchasing goods and services on the platform, loyalty rewards or digital gift cards for end customers. There have been suggestions that Avalanche rather than Ethereum will serve as its base technology due to founder Jeff Bezos’ vocal criticism of Bitcoin’s unregulated nature.
Will AMZ Be a Stablecoin?
Amazon has not confirmed whether or when they plan to introduce their own stablecoin. Should this decision be made, any digital currency introduced would likely be pegged to a fiat currency such as US dollars; this would reduce their reliance on third-party payment processors while providing customers with an easy and convenient way of making online purchases.
Amazon could use its cryptocurrency to reward and offer discounts to its Prime customers – providing yet another incentive to remain with the firm.
Amazon could create its own stablecoin by basing it off unique digital assets it owns, such as Prime video movies or Alexa voice assistant. Such stablecoins could then be hosted on blockchain technology and used to pay for products and services on Amazon’s site.
Will AMZ Be a Cryptocurrency?
Cryptocurrencies have made headlines this year for various reasons. Although they have yet to prove themselves as viable transactions tools, there are indications that they could become mainstream in future.
Amazon recently made headlines when they hired a digital currency and blockchain product lead to their payments acceptance team, sparking speculation that the company might soon begin accepting Bitcoin and other cryptocurrencies as legitimate payments options. Furthermore, this move legitimized the industry further.
Although speculation, other signs point towards Amazon developing its own cryptocurrency. Amazon purchased several domain names related to this technology and recently formed a partnership with Avalanche – a blockchain network using AWS tools – intended to encourage more businesses and governments to utilize blockchain technology. Furthermore, Avalanche will gain prominence within AWS Marketplace, giving it an advantage over rival blockchain networks and drawing new customers in.
