Amazon executive’s have stated repeatedly that the company is not planning a move into the cryptocurrency market in the near future. With that being said, many investment analysts aren’t buying it. They believe that Amazon is about to launch its own cryptocurrency based upon moves by both Facebook and Walmart.
Walmart has talked about launching a cryptocurrency called stablecoin. The company has already applied for patent protection for their own cryptocurrency mechanism. Walmart has developed significant online sales, and it stores are all over the world. If Walmart were to go ahead with its own cryptocurrency, the company could potentially save a significant amount of money on payment processing fees. Walmart is a main competitor with Amazon, and Amazon would not want to be at any type of competitive disadvantage.
Amazon and Walmart are watching what is happening at Facebook. That company is working on Libra. Facebook has stated that they want to serve those who don’t have a bank and those whom they call the underbanked. Amazon and Walmart would like to have this group’s business as well.
There are some signs that Amazon might be moving into the cryptocurrency space. The company has registered three names for a possible cryptocurrency. Some state that this is simply a means for Amazon to protect naming rights and not a real move into cryptocurrency.
Amazon has developed a blockchain service of its own. It has also entered into agreements with companies that work in the blockchain development area. Furthermore, Amazon has received a patent on an algorithm to make effective cryptocurrency payments.
These developments all put together lead many investment analysts to believe that Amazon will launch its own cryptocurrency sooner rather than later. The regulatory environment in the United States and abroad is a significant hurdle at this time, and that may be all that is holding Amazon and Walmart back.
Source: https://articles2.marketrealist.com/2019/08/is-amazon-moving-into-cryptocurrency/
