Recently, the founder and CEO of Binance Changpeng Zhao in his twitter account said that sooner or later, Amazon will have to issue its own cryptocurrency. What caused such assumptions and will Zhao announcement become reality?
How it all started?
At first the Binance founder stated in his Twitter that he does not understand why any e-commerce business does not accept cryptocurrency. Later on, in the same post, Zhao listed some of the main features and benefits that a cryptocurrency can offer compared to traditional payment methods.
Amazon own crypto issue is the event that the cryptocurrency industry is waiting with bated breath. The adoption of emerging banking and payment technology based on the blockchain by the global online retail giant will open the way for the mass adoption of the digital assets. According to the experts, this would be a turning point in cryptocurrency. Initially, Amazon holding patents obtained over the past year by Seattle’s retail chains, cryptography and distributed data storage solutions, as well as the data market, can integrate cryptocurrency payments into its extensive shopping platform.
Will Amazon follow Overstock example?
The fintech industry is speculating on when Amazon can take the next step in adapting to the new payment options, and develops theories why it has not happened yet. The blockchain enthusiasts have been following the latest news from the company since Overstock Inc the U.S. internet retailer started accepting bitcoins in 2014. That year the online store announced a partnership with Coinbase for accepting bitcoins as payment for home furniture, carpets, decor items, bedding and bath accessories, household goods, kitchen appliances, outdoor equipment, jewelry clothes, and clothing. electronics.
At that time, it was a bold, risky, and far-sighted step, which was to accept digital assets instead of fiat money and send customers valuable items, such as luxury women’s watches or portable computers.
Other online stores that currently accept bitcoins include NewEgg, Shopify, Dish Network and Expedia. In 2014, Amazon said it would not accept bitcoins, because they did “not hear from customers that this suits them.” This means that when popular demand reaches a critical mass,it will be able to accept any cryptographic payments.
Bitcoin is better than new Crypto for Amazon?
If Amazon follows the path of releasing its own cryptocurrency, which Zhou seems to imply, it will inevitably become another major coup for the company, which made its founder and CEO the richest person in the world, because throughout its history his competence.
This online shop may become a major global currency issuer, but any currency it could issue would be just a store credit, which is not a big deal for such huge store as Amazon, but it would not be as universal as the currency which any seller can spend. In that case the company may be better off simply accepting bitcoins, rather than creating your own cryptocurrency.