Changpeng Zhao has a bold claim to make about Amazon. CZ states Amazon will issue cryptocurrency sooner or later. He tweeted this claim on Saturday to his more than 277,000 followers on Twitter.
CZ prefaced this claim by tweeting that he didn’t understand why any e-commerce business wouldn’t accept cryptocurrency payments. He then listed some of the basic features and benefits that cryptocurrency offers today over traditional payment methods.
“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.
Crypto Dan, the Crypto Bull, tweeted in response that once Jeff Bezos, the founder of Amazon, starts accepting crypto, the world will follow.
CZ then tweeted:
“Amazon will have to issue a currency sooner or later.” – CZ Binance (@cz_binance) February 2, 2019.
CZ’s bold claim is something that the cryptocurrency industry has been waiting for – adoption of cryptocurrency by the world’s online retail giant would open the floodgates to mass adoption. It could be crypto’s big breakthrough moment, bursting the dam to usher in mass adoption by the million.
There are a few clues as to what Amazon plans on doing with cryptocurrency. These include Amazon filing patents for cryptography and distributed data storage solutions. One interesting patent is for a data marketplace that analysts claim could be used to integrate cryptocurrency payments into the vast system Amazon has in place for retail and shopping consumers.
Cryptospace has been speculating for a while as to when Amazon might make the jump into cryptocurrency – many more have theorized as to why it hasn’t yet. They’ve been watching for signs of Amazon’s move ever since Overstock Inc. started accepting Bitcoin as a method of payment in 2014.
Overstock was one of the earliest adopters of Bitcoin as a payment method. Via a partnership with Coinbase, Overstock accepted Bitcoin for payment for its inventory of home furniture, rugs, décor, bed and bath supplies, electronics, and many more.
Overstock took a bold, risky, and visionary move but for Patrick Byrne, Overstock’s CEO, it was worth it. By offering to receive digital money instead of cash backed by the central bank and authority of the US Government, it was also a statement.
Amazon’s response in 2014, when Overstock jumped into cryptocurrency, was to say that they would not accept cryptocurrency or Bitcoin because “we’re not hearing from customers that it’s right for them.” It’s been nearly 5 years since that statement – changing tides and growing popular demand for cryptocurrency, when it reaches critical mass, might change Amazon’s mind.
But would Amazon’s cryptocurrency be accepted at other retailers, or would it just be a form of blockchain-based store credit? The argument could be made that Amazon might be better off just accepting Bitcoin rather than creating a cryptocurrency of its own. What do you think? Let us know on our Facebook Page!
