Amazon joins the cryptocurrency fray—Or does it?

cryptocurrency

Would Amazon Catapult Bitcoin into mainstream finance?

Here we take a look into the recent series of events surrounding online retail giant Amazon – from an intriguing job listing to a supposed company insider, and, now, the big-name impact on the cryptocurrency market.

The multi-million-dollar retail giant, Amazon, caused quite a stir when they advertised an opening for the position of a Cryptocurrency and Blockchain Lead on 22nd July 2021. The advertised position has led many to speculate that Amazon is set on forging a path towards mainstream cryptocurrency transactions and payments.

In an article published on 26th July 2021, an anonymous “insider” from Amazon told City A.M.  that the move was not just “… going through the motions to set up cryptocurrency payment solutions at some point in the future” but “a full-on, well-discussed, integral part of the future mechanism of how Amazon will work.” The statement has since been retracted.

With the directive apparently coming from the company’s Founder and Executive Chair, Jeff Bezos himself, the source claimed that Amazon is moving towards creating fast and secure payment options working with cryptocurrency. According to the “Insider”, the project would start with the most prominent cryptocurrency on the market, Bitcoin, and then bring eight of the most popular cryptocurrencies in the world into the circuit. The plans having been in place as early as 2019, according to the source. If this was not enough, the “Insider” also claims that Amazon has plans to establish its own native token, but there’s nothing concrete on that front yet.

But why crypto?

Cryptocurrencies by their very nature are decentralized and fungible, meaning they are not controlled by any governing body. Each token has the same, interchangeable value. By establishing a cryptocurrency wallet that allows you to purchase products on the platform, Amazon would have a more global payment option. This would allow transactions to take place without having differences in various international currencies.

Impact

Speaking at the Bitcoin-focused B-word conference held on 21st July 2021, the CEO of Tesla, Elon Musk, claimed that the company would “most likely” resume taking Bitcoin as payment. The electric carmaker had previously discontinued Bitcoin payment due to environmental concerns. Bitcoin saw a sudden hike in value after Musk’s statement despite having been in a slump the previous week.

The speculation of Amazon accepting payment in bitcoin sent the market into a similar frenzy, a very visual proof of the influence that the company stands to have over the crypto-market. Even the supposed backing of the two big-name companies sending prices skyrocketing.

As of 27th July 2021 Amazon has denied the claim of adopting Bitcoin as a payment option. An Amazon Spokesperson, responding to Gizmodo, said, “Notwithstanding our interest in the space, the speculation that has ensued around our specific plans for cryptocurrencies is not true. We remain focused on exploring what this could look like for customers shopping on Amazon”.

So while Amazon is yet to throw its hat into the fray, cryptocurrencies may still find their big break in mainstream retail in the near future.

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email
Tanvi Dayal
Tanvi Dayal is a staff writer at jumpstart. She believes herself to be a jack of all trades still looking for her mastery. Has a plethora of hobbies that change with the season. Fondly refers to swimming pools and museums as her “other homes”.She has been writing since the age of 8 and hopes to never stop exploring the unique within the relatable.

RELATED POSTS

How Facebook Has Failed to Administer Its Own Policies

How Facebook Has Failed to Administer Its Own Policies

Social media giant Facebook finds itself making headlines now and then. The recent one is related to Facebook spending the equivalent of 319 years labeling or removing false and misleading content posted in the U.S. during last year. According to internal documents accessed by the Wall Street Journal, the employees at the social media company have raised concerns about the spread of harmful and misleading information on its platforms.

Bitcoin Mining So Energy Intensive

Why Is Bitcoin Mining So Energy Intensive?

The popularity of Bitcoin has given way to concerns surrounding its ecological impact. As of writing this article, Bitcoin is trading at US$45,106. The global impact of Bitcoin has been so tremendous that El Salvador adopted it as legal tender and Ukraine legalized Bitcoin exchanges.

What is Deep Tech and Why is it Important

What is Deep Tech and Why is it Important?

Deep technology is the latest addition to the startup universe and to the world of innovative problem-solving. The term “Deep Tech” was coined by Swati Chaturvedi, the founder of the digital investment platform PropelX. It refers to startup companies based on substantive scientific or technological innovation.

Twitter to Pay Heavy Price for Misleading Investors

Twitter to Pay Heavy Price for Misleading Investors

Twitter has been grabbing headlines for the past few months. First, it was 140 free non-fungible tokens (NFTs) as a giveaway. Now, it is the shareholder lawsuit against the social media giant. On Monday, Twitter Inc said that it would pay US$809.5 million to settle a shareholder class-action lawsuit which alleged that the company misled investors about its user base growth and user engagement.

Evergrande’s Implosion

What Led to Real Estate Giant Evergrande’s Implosion

China’s second-largest property developer, Evergrande, is undergoing a severe liquidity crisis. The company’s shares are down 85% since January 2021, and they are US$300 billion in debt. In a bourse filing on September 14, 2021, Evergrande warned people of a possible liquidity crisis.

Google’s Global Antitrust Battle

Google’s Global Antitrust Battle

Over the last couple of years, tech giant Google has been getting caught up in antitrust lawsuits across the world. From 2017 to 2019, the tech company has been fined US$9.4 billion in Europe alone. In 2021, Google has been hit with a US$177 million fine in South Korea and is undergoing an investigation by the Competition Commission of India (CCI).