Rumors are rife that Amazon is gearing up for its own dedicated cryptocurrency which means we may be able to see Amazon cryptocurrency getting a place for itself on the coin market cap in future.
It is quite surprising to know that Amazon, being the world’s third largest retail giant after Walmart and Alibaba, still hasn’t entered into the cryptocurrency market yet. So, when the news of Amazon acquiring three domain names related to cryptocurrency spiraled like a wildfire across online and social media, cryptocurrency advocates couldn’t help but get excited about it.
Amazon Cryptocurrency Rumors: What Started Them?
The speculations around Amazon cryptocurrency began to spread across all over the social and print media when DomainNameWire, a leading publication, reported that Amazon has acquired three cryptocurrency-related domain names that include: amazoncryptocurrency.com, amazoncryptocurrencies.com, and amazonethereum.com.
Later, this news was picked up by CNBC and from there it spiraled into a blob of speculations, causing quite a stir among the Amazon users as well as crypto supporters.
People started believing Amazon was all geared up for its own cryptocurrency, shifting its services to the blockchain technology or was devising to launch its own dedicated cryptocurrency exchange. Whatever the retail giant had intended to do with the domain names, the news did get everyone really excited, even it was only momentary.
How Can Amazon Cryptocurrency Be a Game Changer?
Many cryptocurrency advocates believe that an Amazon cryptocurrency could prove to be a game changer for the retail giant. If Amazon starts accepting payments in the form of its own cryptocurrency, then this would mean there will be a mass adoption and acceptance of cryptocurrencies by the consumers across the world.
Amazon is likely to reach new growth avenues if it adopts the cryptocurrency payment as a new payment method. Once it does, consumers will also be encouraged to put their firm belief in the notion of cryptocurrencies given how tainted their reputation already is in the market right now.
When we speak of Amazon’s current supply chain system we can’t think of anything else apart from it being innovative and unparalleled. However, it can be further optimized if the retail giant considers adopting the distributed ledger technology. Amazon handles the sales of over 12 million different products so come to think of it how a blockchain technology can help to optimize the shipping logistics.
With a blockchain technology is incorporated into Amazon’s supply chain management system, the company will be able to track each and every move of the product through its supply chain and pointedly improve its productivity.
If Amazon joins the crypto bandwagon, it can be expected that the company’s cryptocurrency payment solution will be built on its own blockchain and operate as a separate Amazon-owned digital currency. This digital coin will then be accepted by all the Amazon’s services such as Amazon Prime, Audible, and Twitch.
Since its digital currency we’re talking about, the Amazon cryptocurrency will be able to process over 600 transactions per second, reflecting the number of purchases being made on Amazon during their peak sales time period. A cryptocurrency-based payment model will apparently remove the requirement for region-specific websites and won’t have to deal with fiat currencies. Apart from that, the Amazon customers will be able to enjoy a higher level of security and benefit from the lower transaction fees.
Is an Amazon Cryptocurrency on the Cards?
Despite major conjectures being made about Amazon entering the cryptocurrency market, the company has still not made any official announcement. It can be said that the company purchased the domain names with the intent to protect its brand name.
Or, it can also be thought that the company wanted to prevent confusion between its own digital payment method or virtual currency known as Amazon Coin (which was launched back in 2013, enabling customers to make online payments), and other cryptocurrencies currently operating in the market.
If we were to believe the grapevine, it is being said that Amazon will most likely adopt Bitcoin or Ripple as its cryptocurrency payment method. Again, no spokesperson from the company has come out and announced anything as of yet. What does look more likely to happen is, the retail giant would think of launching its own cryptocurrency instead of partnering up with other crypto companies.
Let’s wait and watch until that happens.