Could Amazon release its own crypto?
Rumors have been swirling that online retail king Amazon, is about to move into cryptocurrency.
Although it seems highly likely that they would join the cryptocurrency revolution in some form, it’s still a matter of debate as to how.
Whether it’s accepting Bitcoin for payments, developing their own digital currency, or adopting blockchain technology for shipping logistics, the whispers have been lingering for years.
In crypto circles, those whispers recently became much louder, when Amazon registered three crypto-based domain names late last year: AmazonEthereum.com, AmazonCryptocurrency.com, and AmazonCryptocurrencies.com
Amazon has remained tight-lipped regarding the acquisition of these online addresses.
Whatever Jeff Bezo’s company has in store, there’s one thing we can all be sure of: Amazon entering into cryptocurrency would be a game changer.
What impact could Amazon have on cryptocurrency?
Should they begin accepting payments, it’d completely change the landscape for one of the world’s largest retailers.
It would also open up an entirely new era of cryptocurrency mass-adoption by consumers.
Whether this is a credible scenario or not, it is highly likely that Amazon could adopt crypto payments at some point.
Amazon has a reputation of deploying its development teams on long-term focused projects.
It’s also highly possible that the third-largest retail store (after Walmart and Alibaba) could even develop their own blockchain solution.
A Blockchain-Based Amazon Supply Chain
We considering the idea of stores accepting cryptocurrencies as a form of payment, we tend to overlook one of the most useful applications blockchain technology has to offer.
According to CoinCodex, Amazon’s supply chain is undoubtedly among the most innovative and sophisticated supply chains in existence, but a distributed ledger technology could play a significant role in further optimization of the process.
The retail giant is already capable of operating the sales of more than 12 million different products.
Since blockchain technology has a high potential to optimize the shipping logistics, it’s highly likely that they are looking into the technology.
Incorporating a blockchain-based supply chain management system would enable them to document each move of a product through the supply chain and significantly improve its efficiency.
Retail Market Impact of an Amazon Cryptocurrency
When you consider the capabilities of their developers, it can be expected that if the retail giant integrated a cryptocurrency payment solution, it would be built on their own blockchain and function as a separate Amazon-owned cryptocurrency.
Such a coin would probably be accepted by all their own services, such as Prime, Twitch, and Audible.
The cryptocurrency would also have to be capable of processing over 600 transactions per second since this is the number of purchases made on Amazon during peak sales hours.
A crypto-based payment method could remove the need for region-specific websites and fiat currencies.
Costumers would be granted a higher level of security and benefit from lower fees.
Could Amazon Integrate Bitcoin?
At this point, it is highly unlikely that they will integrate Bitcoin since it is slow, expensive, and incapable of processing a high number of transactions.
Nevertheless, the upcoming Lightning Network implementation might change that.
However, there’s also the eternal question of volatility and compliance.
Therefore a partnership with a privately owned platform like Ripple might present a viable solution.
As of today, the company has not made an official statement regarding the possibility of an integration of a cryptocurrency payment method.
Only time will show, what the company’s executives have in mind.