Amazon has launched its own fully managed blockchain service for the development of scalable blockchain networks. The company has also developed a fully managed ledger database, Amazon QLDB, which can be used to develop blockchain applications. This capability, coupled with the company’s broad customer base, makes it one of the most eligible companies to enter the cryptocurrency space.
The potential launch of Facebook’s (FB) Libra and Walmart’s (WMT) stablecoin could eventually force Amazon to enter the cryptocurrency space. The company may either have to accept these cryptocurrencies for payment or launch its own. A stablecoin with significantly lower processing charges than credit cards or other payment mechanisms could disrupt the payment segment.
Facebook has repeatedly highlighted that its main motivation in launching Libra is to reach the world’s unbanked and the underbanked. Therefore, if Amazon refuses to acknowledge the digital asset, it stands to lose a significant e-commerce opportunity. To know more about Facebook’s Libra, read Can Facebook’s Libra Make Cryptocurrency Mainstream?
Walmart, which has also applied for a patent for a stablecoin mechanism, is a key Amazon competitor. Weekly, around 265 million customers visit its 11,500 physical stores across 27 countries. If Walmart were to launch a stablecoin, Amazon could be impacted significantly. Read More Here
