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Crypto Non-Grata? Why Did Amazon Deny Bitcoin Plans?

  • Amazon has issued a statement denying the claims that it has plans to start accepting Bitcoin by the end of the year.
  • A report from London’s City A.M revealed that an unnamed insider has dropped hints that the e-commerce giants have laid down concrete plans to accept cryptocurrencies.
  • In the past, large corporations have taken a secretive stance when it comes to cryptocurrency adoption.
  • Since Amazon’s denial, the price of Bitcoin has sunk by roughly 2% which is in sharp contrast to the 12% rise it had when the rumour broke.

Large corporations have adopted a secretive stance towards their cryptocurrency plans, often taking the entire community by surprise. It seems that Amazon may be following the same path, as the company has come out to deny plans that it is going to begin to accept cryptocurrencies as a payment method.

Early in the week, Bitcoin enjoyed a massive rally after it was disclosed by an anonymous source that the e-commerce giants had extensive plans in place to begin accepting Bitcoins.

Amazon Denies Bitcoin

Hearts were certainly broken after Amazon refuted the validity of a media report that it was going to begin accepting Bitcoin as payment on its platform. According to a spokesperson for the company, although Amazon has a keen interest in the crypto space, “the speculation that has ensued around our specific plans for cryptocurrencies is not true.”

The company however stated that it is “focused on exploring” how customers might like a new payment system.

A major trigger for the news that Amazon will accept bitcoin as a payment method was most likely because of a job ad it sent out seeking a digital currency and blockchain product lead. Since denying the claims, Bitcoin prices fell by around 2% and currently trades at $38K while trading volumes are at a healthy $41 billion.

The “Rumour” Swirling Around Amazon

According to a publication by City A.M, an insider at Amazon revealed that the e-commerce behemoth had extensive plans to begin to accept cryptocurrencies as a payment mechanism. The anonymous source stated that the plan is a “full-on, well discussed, integral part of the future mechanism of how Amazon will work.”

Bitcoin was mentioned as the first of about eight cryptocurrencies that will be accepted by Amazon. According to the source, Ethereum, Cardano, and Bitcoin Cash will follow suit shortly after. 

Since the breaking of the news, the price of Bitcoin jumped by roughly 12% to reach highs of around $40K.

On The Flipside

  • Although still considered a rumour, Amazon isn’t the first corporation to accept payment in Bitcoin.
  • Tesla announced that it had begun accepting payment in Bitcoin for its vehicles and later halted it due to environmental concerns surrounding Bitcoin.

Why Are Large Corporations Secretive About Their Cryptocurrency Plans?

It is a common practice for corporations to keep the space in the dark about their cryptocurrency plans. There might be an iota of truth about the rumour but Amazon’s denial gives credence to the claim that corporations are generally “hush-hush” about their crypto ambitions.

One reason for this may be because of the element of surprise which is a common practice in the corporate world. Another reason may be as a result of the hard stance of regulatory agencies towards cryptocurrencies and these firms may not want to stir the hornets’ nest.

Tesla’s $1.5 billion BTC purchase came as a shock to the entire community and Apple has consistently stated that it has no plans to launch cryptocurrencies although there are several hints that cryptocurrency enthusiasts are latching on. 

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    This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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    Author

    Milko Trajcevski has been in the crypto world for years, and as such has gathered both a skill for writing as well as a native prowess when it comes to understanding everything that occurs within that world. Through skilled writing and determination, he covers articles about cryptocurrency, tokens, blockchain, crypto-asset regulations, crypto wallets, exchanges, liquidity, DApps, forks, mining, security, and blockchain technologies. He is a professional with a track record of proven expertise within the crypto space.