Amazon and Cryptocurrency, two of the most colossal words in print media today. There’s been rumours of Amazon getting ready to launch a currency exchange. At the very least, Amazon has definitely positioned itself for this outcome by purchasing domain names like amazonethereum.com, amazoncryptocurrency.com, amazoncryptocurrencies.com.
DomainNameWire spread belief that Amazon was getting their ducks in a row regarding an exchange when the above domains were purchased by Amazon in November. With Amazon being known for its innovation, it would be more than likely that these assumptions are correct. Or would it?
Amazon reached over 177 billion USD in sales for 2017, it deals with 50% of North American online purchases and operates on a comprehensive scale. But despite offering a large variety of payment options, Amazon has yet to allow people to pay with bitcoin or any other cryptocurrency. As the leader in online retail, it’s in a prime position to do so. Any cryptocurrency Amazon adopted would surely see a huge surge of support.
This might seem like a no-brainer without diving into the details. But in this case, the details make all the difference. The CEO of Amazon made a public statement addressing the future of Amazon and blockchain. Stating that the decision to not pursue that blockchain technology integration was a deliberate one. Amazon has decided, for the time being, to step back, where other organizations have progressed full force into blockchain development. The CEO continued to state that Amazon will continue to move forward in the tech world, just not on the blockchain platform.
I reiterate, the details make all the difference. Why would a multi-billion dollar company that runs entirely on technology be hesitant to embrace blockchain? Well, here are some possible reasons.
Bitcoins transaction speed last year was 7 transactions per second, where-as Amazons transactions per second reached 600 during one of their biggest sales. If even a small amount of their trafficking customers paid with cryptocurrency, customers would be waiting for hours for the sale/transaction to go through. This doesn’t exactly scream good customer service.
Amazon Customers Aren’t Backing Crypto…Yet
Tom Taylor, head of Amazon sales told Re/Code that they have considered integrating, but the demand from Amazon customers just aren’t there. As one of Amazons core principles being ‘Customer Obsession,’ the company rarely makes moves without their following requesting them to do so.
“We have considered it,” said Tom Taylor, “but we’re not hearing from customers that it’s right for them, and don’t have any plans within Amazon to engage Bitcoin.”
This is a pretty big one for large corporations such as Amazon. Bitcoin and many other cryptocurrencies haven’t had the best luck regarding security within the last few years. Any large corporation accepting cryptocurrency would be susceptible to a large amount of risk if the only way a transaction was verified would be by “the community at large.” This might be the exact thing Blockchain stands for, but it doesn’t mean large corporations are ready for it.
Cryptocurrency has yet to be recognized as a legitimate replacement for fiat, which causes uncertainty in its nature. To add to the legitimacy problem, the IRS is claiming tax on capital gains regarding every payment made within the United States border.
Amazon is a company that is tight lipped about how many Kindles they retail, so it’s not a surprise that for now they also seem to be secretive about their plans in the crypto realm. But whatever capacity Amazon chooses to get involved in with Blockchain could become a household name overnight.