Amazon Has Revealed Why It Is on the Fence Regarding Virtual Currency Business

While large IT companies such as Facebook are developing virtual currencies, AmazonPay CEO who was on the fence on virtual currency-related businesses revealed why.

It is well known to everyone that IT giants such as Facebook and eBay are now entering the virtual currency industry in earnest. The companies have started developing their own virtual currency, Libra, in pursuit of a world where freer financial transactions are possible, sparking controversy around the world, including in the financial industry.

Meanwhile, Amazon, the world's largest online shopping mall, officially announced the company's plan at a conference in New York that it would not be willing to participate in the virtual currency market for the time being.

Amazon Pay CEO Patrick Gauthier added that Amazon is a solid company with feet on the ground, explaining that "Amazon is capable of solving problem on its own, and certainly will step its foot in something that is proven to be work."

"Just because we can build virtual currencies like Libra doesn't mean we have to do it," he said, stressing that joining the virtual currency industry is not a top priority for the company.

As a concrete example, Gauthier cited Amazon's recent partnership with financial services company Synchrony. Synchronic recently issued a card called Amazon's Credit Builder, which provides customers with a system to access information about the credit score's judgment criteria. It clarified the criteria for credit evaluation of credit card, which had been unclear until now.

Credit scores are one of the most important indicators in the United States to express an individual's creditworthiness and are closely related to ordinary life.

Gauthier said Amazon's "significant responsibility" for sending its services to customers, saying delivering such top-notch convenience is Amazon's top mission.

In other words, Amazon's top priority is to provide trust and stability to its customers. Unless the use of virtual currency technology is the only solution, Amazon is unlikely to join the virtual currency industry.

While Facebook has been globally been under evaluation since the announcement of its development of Libra virtual currency, one may question whether it is a strategic move on Amazon to avoid global criticisms by the public.

Reporter Gina Lee (news@dailycoinews.com)의 기사 더 보기

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