We all love a good prediction, and what better way to kick off February than with a prediction from Changpeng Zhou (CZ) about Amazon’s future. No, not the Amazon rainforest, but the online retailer and how it could create its very own cryptocurrency very soon. While CZ’s prediction might seem pretty out there, it could be a lot more realistic than many think is possible.
Could 2019 really be the year when we meet Amazon’s very own cryptocurrency?
Amazon will have to issue a currency sooner or later.
— CZ Binance (@cz_binance) February 2, 2019
Crypto Payments Wouldn’t Delay the Ordering Process
Already when you order something from Amazon, there is a fairly large delay between hitting the purchase button and the money leaving your bank account. This means that the speed at which currency is taken from shoppers isn’t an issue for Amazon. Bitcoin is regularly attacked for its slow transaction time, but with Amazon’s setup this wouldn’t make a difference – if anything it would speed up the paying process. That said, if payments did need to be instant, the Lightning Network could be used to speed up these transactions.
Dabbling in DLT
Amazon isn’t ignoring the whole blockchain and distributed ledger technology (DLT) world either. Back in November 2018, Amazon launched its Quantum Ledger Database (QLDB) and it looks set to become the go-to piece of DLT for large accountancy firms. For the time being, QLDB essentially feels like a Google Sheet on steroids and shares many of the same technical features. While it’s not a spreadsheet as such, it very much feels like QLDB is just a shared environment updated in real time by multiple users at the same time.
You Can Already Purchase from Amazon with Crypto
Ok, you caught us. You can’t actually buy directly from Amazon with your crypto, but you can do something that’s very similar. You can head on over to any number of sites that sells vouchers for crypto. Coinbase has just started selling Amazon vouchers that can be bought with crypto, meaning with a little leg work, you can still buy from Amazon using your crypto. Once you buy the voucher with your crypto, you enter the code in the redeem section on Amazon, and your account will be credited with the corresponding amount. For now, this process is a little long winded and will likely put many people off using crypto for Amazon purchases.
CZ Taking to Twitter
On Twitter, CZ wrote that he can’t fathom why internet businesses aren’t yet accepting cryptos, as it’s easier and cheaper than accepting fiat payments – not to mention the fact you can reach a more diverse demographic. While CZ is certainly right here, he is missing one key factor that might help sway a number of smaller businesses – the free publicity. The crypto world goes mad for new stores accepting crypto, so any small business that jumps on the crypto bandwagon will benefit from this free marketing – it’s a win-win situation for everyone.
For any internet (non-physical) based business, I don’t understand why anyone would not accept crypto for payments. It is easier, faster and cheaper to integration than traditional payment gateways. Less paperwork. And reaches more diverse demographic and geography.
— CZ Binance (@cz_binance) February 2, 2019
Whether Amazon will actually issue its own cryptocurrency is still yet to be seen, but it would benefit from doing so. Even adding Bitcoin payments would prove fruitful for the giant online marketplace. In order to stay ahead in industry, you have to keep innovating, meaning if Amazon doesn’t implement crypto payments, other firms could use this as a tactical advantage to muscle in on the massive online retail giant’s market share.
