Feb 6, 2013

Amazon coins

Amazon will introduce their own "currency": the Amazon Coin.
See link here for more details on the announcement: Amazon Coins

It again illustrates how Amazon continuously keeps rethinking and expanding their business model.  So, this is supposed to be for the app developers....right?  Or is this just the beginning of something much bigger?

First, let me say I don't know anything about finance or currencies, but this can't stop me from trying to think what the longer term goal for Amazon may be here.
Could this enable:

  • A currency for the gaming world?
  • Points for a loyalty scheme with which you can buy anything on Amazon (over time)?
  • Amazon to become a bank, giving credits and loans for things you buy on Amazon?  
  • Can they come up with cheaper payment systems and undermine traditional credit cards?
  • Can it become a black circuit money without traces for tax controllers?  Drugs, prostitution ...?
  • Will this become an enabler for payments via mobile phones?
  • Can they provide a netting service, where many transactions are netted out to one delta transaction in your own currency, leading to lower taxes and lower currency exchange rate costs for all parties?
  • Can it become an incentive for consumers watching advertisements, thereby collecting a value with which they can go shopping at Amazon?  This by itself could be a big deal!

What else can you come up with?  
Does this make sense?