The words cryptocurrency and Amazon may soon be conjoined after reports surfaced linking giant online retail store, Amazon, to the registration of various cryptocurrency domains. The domains in question include amazoncryptocurrencies.com, amazoncryptocurrency.com, and amazonethereum.com.
These rumors started in late 2017 and while Amazon remains lip-locked on any blockchain developments, speculation within the larger cryptocurrency community remains rife. According to a survey by LendEDU, over half of the respondents said they’d use an Amazon cryptocurrency to make purchases on the site.
Over 58% of Amazon’s Prime Users said they’d consider using “Amazon Coins” while 48% said it’s possible to use Amazon as their main bank account.
On its end, Amazon hasn’t made any announcements regarding a future private cryptocurrency or the registrations. Nevertheless, the real question is…
What Possibilities Could “Amazon Coin” Hold as a Cryptocurrency?
With so much speculation surrounding Amazon’s recent moves in the crypto space, it’s easy to forget to focus on what possibilities an Amazon cryptocurrency could mean:
Amazon’s Cryptocurrency Impact on the Retail Space
Audible, Twitch, and Amazon Prime are some of the many services housed by Amazon’s parent company. Should the online retail giant develop a blockchain system, the cryptocurrency will be flexible enough to work on all its platforms.Having said that, it’s possible that the blockchain technology developed will be done in-house and will be private to meet Amazon’s threshold. For instance, during peak periods, Amazon processes over 600 transactions per second – a threshold Ethereum and Bitcoin have failed to meet.
Amazon operates worldwide, accepting multiple fiat currencies. This means it has to contend with reduced profit margins caused by currency conversions. With the introduction of a standard cryptocurrency, Amazon will be able to open shop in new markets and also offer an international standard rate to maintain stability.
As a result, this will see its customers benefit from increased security and lower fees – benefits that a huge section of users continue to petition for.
Supply Chain Optimization
Amazon boasts over 43% of all online sales worldwide thanks to its over 300 million account holders. To drop your jaw even further, Amazon houses a portfolio of over 12 million products and each of these products ships throughout the world.
With this in mind, it’s inevitable to have an optimized supply chain management system. Knowing this online retail giant’s reputation for building in-house solutions, a blockchain solution isn’t far-fetched.
With a distributed ledger technology in its hands, Amazon will offer next-level transparency to its customers. For instance, for the entire supply chain, it will be possible to monitor every step of a product from ordering to tracking and fulfillment.
Since this will increase Amazon’s efficiency, it means lower overheads and consequently, this will trickle down to consumers through cheaper and faster delivery of products.
Amazon Partnering with Other Cryptocurrencies?
Currently, Amazon uses the Amazon Coin – a virtual currency launched in 2013 that allows customers to make online payments.
However, in June of last year, two startups (Opporty and CLIC Technology) teamed up to provide Amazon customers with a browser extension that allows them to use ether (ETH) tokens to pay for products although Amazon doesn’t accept cryptocurrencies.
Keep in mind, customers can buy Amazon gift cards using cryptocurrencies. Therefore, it’s possible that Amazon may be looking to burn this bridge by offering its own solution. Until then, Amazon doesn’t seem to entertain the idea of partnering with other cryptocurrencies.
What Next for Amazon in the Crypto Space?
While Amazon remains tight-lipped on rumors renting the air about a private cryptocurrency or otherwise, speculation continues to grow, especially after Amazon registered three domains linked to leading cryptocurrencies.
With such developments and Amazon Coin, already in use for app and Kindle payments, there’s a strong possibility of an Amazon cryptocurrency in the making. Watch the breakdown here.