Amazon Won’t Be Creating Its Own Cryptocurrency Anytime Soon, Says VP
- Amazon doesn't deal in the “speculative”
- The key question is who do we have to partner with
- Could public’s trust Issue be a factor?
- Government working to “Keep Big Tech Out Of Finance Act”
In June, Facebook finally revealed the plans of its new cryptocurrency project dubbed “Libra.” In light of this, it has been projected that it won’t be long before the big giants like Google and Apple will come up with their coins as well.
We might be entering the era of big tech wading into the financial sector but Amazon is not part of this herd, for now.
On the prospect of should we expect a move from Amazon on his front? A Digital currency to compete with big banks by offering financial products?
Patrick Gauthier, vice president of Amazon Pay said, Not anytime soon.
Amazon Doesn't Deal In The “Speculative”
Speaking at the inaugural Brainstorm Finance conference of Fortune in Montauk, N.Y. on Wednesday, he said, “At Amazon, we don’t really deal in the speculative.” The company rather lets data drive its decision making about new products.
“We always start from an identified need that we have the capacity to solve,” Gauthier told the crowd.
Another requirement for the product is that the solution must have the ability to scale.
“The fact that we can build something doesn’t mean that we should,” he added.
The Key Question is “who do we have to partner with?”
The mega-retailers prefers to go the partnership route when dabbling in the financial realm. And being a “very pragmatic company” as Gauthier said, the key questions the company asks itself is “What do we have to build, who do we have to partner with.”
Amazon's recent partnership with Synchrony for a new card called “Amazon Prime Store Card Credit Builder,” is one such example.
Facebook also gathered dozens of companies to create a governing association for its cryptocurrency that involves Coinbase, Xapo, eBay, Andreessen Horowitz, Visa, Stripe, PayPal, PayU, Mastercard, Lyft, Uber, Vodafone and many others.
Could Public’s Trust Issues Be a Factor?
Recently, Ben Mezrich, the author of “Accidental Billionaires,” said in his view, “Amazon could pull this off because for whatever reason, we all trust Amazon. We put our credit cards in there every day.”
Because it’s all about “trust” and you can't have a bank and a new currency, if you are in the middle of it, and “people don't trust Facebook.”
As we reported, a survey revealed that 40% of Americans actually trust Bitcoin more than Facebook’s Libra.
But with Amazon, is it any better.
Not long ago, Amazon admitted to the US Senate, “We retain customers’ voice recordings and transcripts until the customer chooses to delete them.”
Government Working to “Keep Big Tech Out Of Finance Act”
However, regulators around the world are not happy with Facebook’s cryptocurrency step. Lawmakers have been calling to stop those plans and grilled David Marcus in front of the senate most recently.
The Democratic majority of the House Financial Services Committee even drafted legislation, “Keep Big Tech Out Of Finance Act” that would prevent big tech companies from issuing digital currencies or functioning as financial institutions.
So, it makes sense that Amazon won’t be making any hasty decisions and an Amazon Coin isn’t in the cards anytime soon.