Posted 2 months ago | by Catoshi Nakamoto
An anonymous source within Amazon has confirmed rumors of the e-commerce giant entering the cryptocurrency industry to London business newspaper City A.M.
UPDATE: Amazon has denied the story by City A.M. stating it has no plans to accept Bitcoin or any cryptocurrencies. In addition the e-commerce giant added, that it has no plans to develop its own cryptocurrency by 2022.
An unknown woman told the business newspaper that the e-commerce giant is preparing to accept digital assets starting with Bitcoin payments by the end of 2021 and that it has been in the works since 2019.
“This isn’t just going through the motions to set up cryptocurrency payment solutions at some point in the future – this is a full-on, well-discussed, integral part of the future mechanism of how Amazon will work,” the source told City A.M.
“It begins with Bitcoin – this is the key first stage of this crypto project, and the directive is coming from the very top… Jeff Bezos himself,” the insider told City A.M.
Jeff Bezos stepped down as CEO of Amazon and was replaced by Andy Jassy who previously served as the CEO of Amazon Web Services (AWS.) Although Bezos stepped down he still remains at the company as Executive Chair, meaning that he still holds a significant pull over the company.
Ironically this blockchain transition for the company and now a potential launch of accepting digital currency payments are after Jeff Bezos stepped down from Amazon as the CEO. Bezos was replaced by Jassy, who previously offered a mixed review of blockchain technology and its applicability to Amazon’s business in 2017.
In a statement at the Amazon “re-invent” conference in 2017, Amazon’s new CEO expressed doubt that blockchain could be used for more than a “distributed ledger” but also said he and his team were personally interested. However, company policy dictated that they don’t “build technology [just] because we think it is cool.”
In 2018, Jassy eventually allowed blockchain technology as he oversaw the launch of two blockchain products: Amazon Quantum Ledger Database and Amazon Managed Blockchain.
According to the anonymous woman who spoke with City A.M, Bitcoin is the first step in Amazon’s crypto goals. However, the source stated that executives at the company were keen to add other established cryptocurrencies in the future like Bitcoin Cash, Ethereum, and even Cardano. According to the source, the project is ready to go live.
“This entire project is pretty much ready to roll,” the source stated. She added, “It won’t take long because the plans are already there, and they have been working on them since 2019.”
If that’s not enough the source said that Amazon is investigating the creation of its own cryptocurrency, as early as 2022, she said.
The source said that Amazon’s cryptocurrency would be used as a loyalty rewards token which could be used for discounts which fits a utility use case.
“This then becomes a multi-level infrastructure where you can pay for goods and services or earn tokens in a loyalty scheme,” the source said.
This comes after Bitboy Crypto reported that Amazon put out a job post last week seeking someone who can “leverage domain expertise in blockchain, distributed ledger, central bank digital currencies, and cryptocurrency.” This job post went onto state that applicants would help “develop the case for the capabilities which should be developed, drive the overall vision and product strategy, and gain leadership buy-in and investment for new capabilities.”
Amazon has previously, posted a job application for blockchain experience in advertising in 2019, stating it was seeking a “senior software engineer” to join its “Advertising FinTech team focused on a Blockchain ledger.” Another job post earlier this year stated that Amazon Mexico had a product that would be used to convert cash into digital currency.
“This product will enable customers to convert their cash in to digital currency using which customers can enjoy online services including shopping for goods and/or services like Prime Video,” one job post said of Amazon’s “new payment product,” the job post said.
Earlier this year, Amazon launched Ethereum on its AWS-Managed Blockchain service as Bitboy Crypto previously reported.
Amazon now offers several “blockchains as a service” through AWS, which it first started releasing in 2019. Although Amazon’s first step into blockchain was actually in 2018, with a partnership with a company called Kaleido, a start-up company that was born out of leading blockchain incubator Consensys, CNBC reported at the time.
Amazon also discussed last year about integrating blockchain technology for its supply chain, for “verifiable tracking of an item through a supply chain using a distributed electronic ledger,” Yahoo reported.
The company further wrote in a United States patent application for supply chain tracking based on a distributed ledger filed in 2017, that it can be “challenging, if not impossible, to ascertain the trustworthiness of a party as activities move online and internationally.” It noted, “Trust is earned. Once trust is lost, it can often be difficult to regain.”
Additionally, last year Amazon AWS added smart contracts to Amazon Web Services’ Quantum Ledger Database, or QLDB thanks to tech company Blockchain Technology Partners.
The news of Amazon potentially entering the crypto payments space as soon as Q3 sent the Bitcoin markets into a frenzy not seen since Tesla announced that it had added Bitcoin to its balance sheet. Bitcoin surged from $33K to as high as $48K on Binance before being rejected and is currently in the process of consolidation and finding support.
Bitcoin is currently trading at [FIAT: $38,007.34] UP +9.3% in the last 24 hours according to Coingecko at the time of this report.