Amazon is one of the world’s premier online retailers and marketplaces, famed for fast delivery at competitive prices.
Amazon may launch its own cryptocurrency in 2022. Should this take place, it could completely transform the crypto market – Amazon is known for reshaping every industry that it enters with great force and this would no doubt revolutionize it as well.
What is it?
Amazon, the world’s biggest online retailer and marketplace, is expanding at an astounding pace, even leading to the development of numerous cryptocurrency offerings.
Though Amazon has yet to introduce its own cryptocurrency, they have demonstrated an interest in blockchain technology through Amazon Web Services (AWS), their cloud-computing division. Amazon Web Services currently provides various blockchain-related tools and solutions for developers on AWS cloud servers.
Amazon recently made headlines by purchasing multiple domains related to cryptocurrency and posting an job listing seeking a digital currency and blockchain expert, suggesting they are taking an interest in crypto more seriously.
Amazon Coins are currently used for Amazon-hosted gaming and in-app purchases on Kindle devices, but do not fall under the category of cryptocurrency due to not being backed by any physical asset; as such they do not possess as much liquidity compared to traditional cryptocurrencies; making them susceptible to fraud and manipulation.
How does it work?
Amazon hasn’t confirmed their intention to accept bitcoin payments yet, though reports of its potential acceptance have contributed to an uptick in price over recent weeks. But the company does maintain strong ties to blockchain projects that use its cloud computing platform as they grow their projects.
Amazon Web Services gives these projects access to its scalability and reliability as well as its ad-free environment and ability to host confidential data.
Amazon could create its own digital currency to drive user adoption across its platforms, enabling customers to pay with amazons instead of dollars when making purchases and services payments, with conversion back into dollars an easy process. Amazon could even offer sellers incentives to save them in their digital wallet rather than deposit them back into bank accounts with near-zero interest returns.
Will Amazon launch its own cryptocurrency?
Rumors swirling online suggest Amazon might soon create its own cryptocurrency. These speculations were ignited by an Amazon job listing in July 2021 which suggested their entry into this sector of the market.
Amazon remains unlikely to launch its own cryptocurrency anytime soon; moreover, consideration would need to be given as to how this payment model could fit with their business model while simultaneously upholding consumer protection and maintaining security.
Amazon could introduce a stablecoin, which is a cryptocurrency tied to an asset like Amazon Web Services resources such as EC2 and S3. The value of such coins would be determined solely by free market forces rather than fluctuations in Bitcoin price or other cryptocurrencies.
Other uses may include using blockchain technologies to increase transparency within supply chain operations and production sourcing, or incorporating crypto into its payment system. Either way, it seems likely that companies will explore the potential benefits of blockchain technologies in the near future.
Will Amazon accept cryptocurrencies?
Amazon may not officially recognize Bitcoin as payment, but the company is actively exploring and investing in the cryptocurrency and blockchain space through various partnerships and ventures. Amazon’s move is in keeping with a trend among mainstream companies to incorporate cryptocurrency into their financial strategies.
MicroStrategy and Tesla have both previously accepted bitcoin payments. But it remains to be seen what would prompt Amazon to change its mind and accept bitcoin as an alternate form of payment – perhaps its volatility aversion could play a factor?
Amazon currently does not accept cryptocurrency directly, but people can still use them to buy products through prepaid cards such as Bitrefill that allow people to buy gift cards using Bitcoin that can then be redeemed at retailers like Amazon and others. Purse also provides services where people can buy Amazon gift cards with Bitcoin.
