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Wednesday, February 6, 2013

Amazon Is Launching Its Own Currency

Posted by on Wed, Feb 6, 2013 at 7:24 AM has announced that they're creating a new virtual currency, Amazon Coins, for their customers to buy apps and make in-app purchases. The Verge has a great article looking at potential reasons why Amazon wants to get into the digital minting business. These reasons range from mundane (other game developers have their own currencies and it's a financially smart decision for them) to the disturbing ("proprietary currencies have lots of advantages for their issuers, especially when the issuer is attempting to build a proprietary economy"). We'll find out more when Amazon launches Amazon Coins in May, but I urge you to read The Verge piece, which includes a reference to "standalone virtual currencies such as Flooz and Beenz," which "flopped miserably." Flooz and Beenz!


Comments (6) RSS

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samktg 6
@2 Bitcoin does not have a chance. Bitcoin is a pyramid scheme.
Posted by samktg on February 6, 2013 at 11:17 AM · Report this
Fnarf 5
Oh wait, they're just for Kindle Fire apps. Never mind. This is definitely stupid, not just probably stupid. It's gift certificates, big whoop.
Posted by Fnarf on February 6, 2013 at 11:07 AM · Report this
sloegin 4
Oh look, Disney dollars.
Posted by sloegin on February 6, 2013 at 10:58 AM · Report this
Fnarf 3
So, in order to buy from Amazon, they're going to add another screen where you first have to pay dollars for Amacoins, and then back to your transaction where you pay for your goods? That's not going to be very helpful. Otherwise, why on earth would anyone want to tie up any of their liquid assets into Amazon until the moment they need them to pay for stuff? Or is this going to be another way to fuck over people who sell privately on Amazon, who will now not get paid ever?
Posted by Fnarf on February 6, 2013 at 10:20 AM · Report this
watchout5 2
This sounds like one of the dumbest things on the planet. If they called them Wall Mart coins you'd be freaking out and talking about the destruction of money. Amazon wants to "mint their own currency" and it will just be pegged to the dollar. It's little difference between that and a giftcard in my personal opinion. I get the impression that if you put a dollar in you shouldn't be expecting a dollar in value in return, Amazon has to make their money somewhere. Profits don't exist in a vacuum, when you put dollars into Amazon they want to do everything in their power not to give you as many dollars in return, bit coin has a chance, this won't even get off the ground.
Posted by watchout5 on February 6, 2013 at 8:17 AM · Report this
This seems like the kind of thing you do when you've run out of marketing stretegy....
Posted by Foonken2 on February 6, 2013 at 8:02 AM · Report this

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