Pro: despite shooting down crypto rumors, Amazon ‘does not want to stand on the sidelines’

By: Daniela Kirova
Daniela Kirova
Daniela was born in Bulgaria, grew up in Chicago, and then moved to Michigan to attend the University of… read more.
on Jul 27, 2021
  • Amazon is not likely to focus on Bitcoin because its transaction speed is lower than that of cards.
  • Tesla's actions are a sign it may be time to change the way we think about money
  • It will be challenging for Amazon to implement Bitcoin because of processing cost and compliance

Amazon may have confirmed Monday afternoon reports of its imminent push into cryptocurrencies were not true, but the company “does not want to stand on the sidelines,” Arina Kulackovska, Head of Corporate Payment Solutions at the international crypto exchange CEX.IO, told Invezz in an interview.

Amazon is interested in cryptos

Amazon, like many other large corporations, want to give their customers “the opportunity to do something” with cryptos, Kulackovska told Invezz. The company is actively hiring specialists so some of its potential future plans include accepting payments in cryptos. Alternatively, management may be interested in transferring some of its processes onto the blockchain or even paying employee bonuses in cryptos. The executive said: “There are indeed many speculation opportunities around this news.”

Bitcoin won’t be their preferred method

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According to the expert, anyone who can link their card to Amazon will find the money subtracted faster than the speed of the transaction in the blockchain in terms of Bitcoin (BTC/USD) and other mainstream cryptocurrencies. If we take a coin like XRP (XRP/USD), on the other hand, it would stand a better chance of supporting a high number of transactions. Moreover, the processing settlement would be instant and Amazon would not have to wait for mutual settlements with the acquirer. Amazon is not likely to focus on Bitcoin because its transaction speed is lower than that of cards.

Will Amazon take a place among the ‘champions’ of Bitcoin, like Tesla?

The executive wouldn’t call Tesla a mega-supporter. They are just one of the global corporations that have gone public about working with Bitcoin and cryptocurrency technology. At the moment, their actions seem to be more of an indication that it may be time to change the way we think about money. If there’s a major adoption or tech shift, these corporations can take leading positions in crypto sales swiftly.

Amazon will find it harder than Tesla to implement BTC

Kulackovska believes it will be more difficult for Amazon to implement Bitcoin because of processing cost and compliance. She clarified:

“Amazon will have to strongly clamp down on the types or numbers of goods available for buying with BTC – potentially leaving only the expensive items on the available list. Otherwise, they would have to spend an enormous amount of resources on supporting small crypto transactions for the cheaper goods on their platform.”

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