Every day the eCommerce giant is closer to taking a leap that could be key to the future of this payment methodology. Will Galperin imitate him?
Changpeng Zhao He is a highly respected personality within the world of cryptocurrencies. “CZ”, as he is known, is a business executive of Chinese-Canadian origin and creator of Binance, the largest exchange dedicated to this segment of digital assets.
In February 2019, Zhao made a premonition that caused quite a stir in the ecosystem by stating, through a series of posts on his social media, that eCommerce giant Amazon was inevitably going to launch its own virtual currency.
The expert justified his message in the need for internet-based businesses to integrate cryptocurrencies as payment options for users. What is supported? In which They are cheaper than traditional fiat currencies and that allow for broader inclusion from customers around the world.
“It is the easiest, fastest and cheapest to integrate than traditional payment gateways. Less paperwork“reflects the founder of Binance.
For any internet (non-physical) based business, I don’t understand why anyone would not accept crypto for payments. It is easier, faster and cheaper to integration than traditional payment gateways. Less paperwork. And reaches more diverse demographic and geography.
— CZ ???? Binance (@cz_binance) February 2, 2019
Since then, the cryptocurrency industry has been speculating about when will the day come when Amazon turns that prediction into reality. And everything seems to indicate that that day is near.
Furthermore, a recent news item, with its epicenter in Mexico, caused another strong shock: the company founded by Jeff Bezos is working on a new digital payment system and point to the creating your own cryptocurrency. Sources in that country report a publication of the firm in which a job search for a technology team to this end.
“This tool will allow users convert your cash into digital currency To enjoy online services, including purchase of products and services What Prime Video“, they assure.
The job offer has already been removed, but thanks to the site’s cache the ad could be retrieved. Thus, it is speculated that the division Digital and Emerging Payments (DEP) de Amazon has as goal launch it in emerging countries.
The impact of the “Amazon Coin”
While the news shook some experts in the crypto world, others were not taken by surprise, due to the speed with which technology is advancing and the push achieved by tokens with the arrival of the pandemic.
Manuel Beaudroit, CEO of the digital wallet Belo, highlights that Amazon, from Amazon Web Services (AWS), indirectly operates about 25% of all nodes on the network EthereumTherefore, this type of initiative is not surprising.
In dialogue with iProUP, Andrés Burecovics, founder of the consultancy B&P Consulting, indicates that the e-commerce giant is facing a big challenge: the interest that a centralized currency of corporate control could generate, on the one hand, and the need for can float freely in front of all other coins, both cryptographic and fiduciary.
Meanwhile, the cryptocurrency specialist and creator of the Latin American conference #Bitcoinday and Criptotips.club, Álvaro Gandía, in dialogue with iProUP, expresses that for the arrival of a “Amazon token“There is still a long way to go.
Among the advantages, emphasizes Burecovics, is that of massively educate the population in the use of crypto ecosystem in general. “Without a doubt, it would be a big clean and jerk for mass adoption, and so that people who did not use cryptocurrencies begin to do so “, highlights the specialist from B&P Consulting.
In the same sense, Gandía sees a double positive impact if the arrival of a Amazon cryptocurrency:
- The interoperability of its currency with the current crypto market would be enabled
- It would give a “global last mile” solution to all current DeFi platforms
“Imagine what it would be like to be able to use decentralized financial services with the capillarity of Amazon logistics,” the specialist is excited.
Can Mercado Libre have yours?
Free market is one of the most important companies in the world in electronic commerce, as is the case with Amazon, thanks to your impressive regional presence and its great performance on the New York Stock Exchange.
If the North American firm advances in the creation of its digital currency, willit is to be expected that Marcos Galperin will do the same? Consulted by this means in this regard, Burecovics does not rule out the possibility and remember the recent experience of Mercado Pago with the project led by Facebook and baptized as “Libra“.
“Regarding a virtual currency created by MercadoLibre, should be a stablecoin for its use in the electronic commerce industry to make sense, “says the expert, and explains that” a stablecoin must have a parity with another fiat currency and audited accounts to support it “.
The founder of B&P Consulting emphasizes: “Although it is not easy to implement, it would have great advantages for those who adopt it. For example, that of process international transactions without any kind of intermediary, opening the spectrum of commercialization well beyond current borders encapsulated in mutually incompatible regulatory systems. “
Gandía agrees with his colleague and adds that Mercado Libre may eventually add the buy button for bitcoins within your application Payment Market as implemented by Paypal. “It would be a very interesting approach to cryptos, but always in a manageable environment. Without the possibility of transfers between other wallets,” he completes.
The case of Facebook
In 2019 Facebook published the “white paper“(founding document) of Libra, which refers to the creation of your own cryptocurrency together with 28 other companies, among which stood out Mercado Pago, Visa, Mastercard, Paypal, Uber, Spotify and others from different sectors and countries.
A few months, the initiative lost its main allies of the payments sector, such as Galperin’s company, leaving only PayU, Naspers’s fintech arm. Burecovics recalls how Mercado Pago got involved in this project, but that over time it was “between standby and forgotten.”
In april of last year Libra announced a change in strategy total: from the dream of being a stablecoin “that cannot be mined” became a payment network linked to local currencies where it operates and with it Diem’s name.
In this way, Facebook’s entry into the cryptocurrency industry not only would it allow more consumers to access this particular world, but also expand customer base of the company.
In any case, the antecedents speak of only one trend: the companies of technology and eCommerce world’s biggest are already flirting with him cryptocurrency universe.