A recent Amazon job advertisement sparked a surge in the price of Bitcoin and in turn the cryptocurrency market at large, with the price ascending beyond $40,000 for the first time in 6 weeks. However, the price dropped back below the $40,000 mark after a statement was released from the Ecommerce giants claiming that the story was fabricated and speculation surrounding cryptocurrency payment options was unfounded.
However, it seems the surge in price has sparked a trend in trading across top cryptocurrency exchanges, with many crypto speculators and predictions claiming the price is likely to continue to rise in the coming weeks. But, there are other factors that are affecting the price at the moment, such as partnerships and deals completed by established financial giants VISA and Mastercard.
Amazon and cryptocurrency
Amazon’s reach has become so broad that the concept of having its own currency is something that is easily achievable and highly likely to be a success. So much so, that governments may be concerned about the influence and value that a native Amazon currency might have in the global market. Consumers are now able to buy almost anything from Amazon, ranging from televisions and streaming services to fridges and fresh food.
Amazon handles billions of dollars every year, so a new cryptocurrency acting as legal tender entering this marketplace would offer a lot of value to customers. Moreover, there is talk of Amazon offering bonuses and a loyalty scheme built into the native currency, making the whole purchasing process smoother and more beneficial to the user.
Amazons’ native cryptocurrency
While Amazon has denied any interest in accepting Bitcoin as a payment system, it has acknowledged an interest in cryptocurrency. Back as far as 2017, Amazon purchased 3 domains Amazon Ethereum, Amazon Cryptocurrency, and Amazon Cryptocurrencies, so it’s no revelation. But, with the industry thriving and industry leaders like Elon Musk committing to crypto, maybe things have accelerated.
Musk has been a mouthpiece for crypto, whether the industry wanted him to be or not—even accepting Bitcoin payments for his Tesla products. But, Jeff Bezos has remained fairly muted. It’s clear he’s interested in innovation, through his Blue Origin space project.
Another important thing to consider with cryptocurrency is the fast and inexpensive payment system it can provide Amazon and its customers. The one thing that will interest the ecommerce platform the most is the opportunity to access modern payment systems and build and structure them around their own native token. There is talk of Amazon launching its own cryptocurrency by 2022, so there is a sense of urgency in terms of developing and testing these technologies.
Amazon isn’t the first major tech company to pursue the creation of its own native token, as Facebook proposed the “Libra” back in 2019. The plan to unveil the new currency was met with a great deal of resistance from the US government, probably seeing Facebook as a company that held too much power at the time—in light of the data protection scandals associated with Cambridge Analytica—though the government stance was that authorities were concerned about its lack of transparency.
The 2022 plan for Amazon to launch its own currency is on the horizon. The company will likely move to partner with and purchase firms that will help to facilitate the process, in the coming months.
Founder Dinis Guarda
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