Is Amazon About to Announce a Proprietary Cryptocurrency Project?
Amazon’s unannounced cryptocurrency project follows the steps of Facebook’s Libra, now Diem.
Amazon may very well be planning to launch a digital currency of its own. The project hasn’t been announced yet, but recent job posts may hint that way.
A job announcement for a Software Development Manager – Digital and Emerging Payments, found by Coindesk, states the company intends to “launch a new payment product starting with Mexico as our initial launch country. This product will enable customers to convert their cash into digital currency using which customers can enjoy online services including shopping for goods and/or services like Prime Video.”
Facebook was the first big tech company to announce a cryptocurrency project: Libra. In December 2020, it was rebranded as Diem.
The 27-strong Libra Association planned to launch digital versions of several currencies, plus a “digital composite” of all of its coins, in order to address backlash from regulators over its initial plan to create one synthetic coin backed by a basket of currencies.
Now, the plan is to launch a single coin backed one-for-one by the dollar – a stablecoin. Diem is not meant to rely on cryptocurrency mining. Only members of the Diem Association will be able to process transactions via the permissioned blockchain.
The Diem Association officially plans to transition to a permissionless proof-of-stake system within five years, but according to their own materials, no solution exists “that can deliver the scale, stability, and security needed to support billions of people and transactions across the globe through a permissionless network.”
The news that Amazon may be about to announce plans to launch a proprietary digital currency comes days after Tesla announcing it bought $1.5 billion in Bitcoin as it intends to start accepting Bitcoin payments in exchange for their products.
Many companies across the world have started to accept payments in cryptocurrencies years ago, but Tesla and CEO Elon Musk have become an inspiration to consumers, investors, and companies. Tesla will probably lead many other businesses to now do the same.