How will Amazon and Starbucks’ Blockchain Plans Impact the Market?
Last week, two world-known U.S. brands – Amazon and Starbucks – alluded to plans to either integrate virtual currency or blockchain technology in their corporate models.
LendEDU queried 1000 Amazon clients on whether they would use the ‘Amazon Coin’ if the company was to launch it.. Results showed that more than 50 percent of the participants said they would.
On the other hand, Howard Schultz, Starbucks Chairman, commented that blockchain will most possibly be the backbone of their integrated app in the near future.
A growing market
If these two brands push through with these plans, this will lead to an increase in users within the cryptocurrency space. 2017 data from Statista shows that Starbucks’ global revenue stood at $22.39 billion and the number of stores at 27,339 globally. . The revenue of the company and its stores have increased annually in the the past 10 years, except in 2009. Similarly, Amazon’s reach is global, selling to millions of customers.
Fire Lotto CEO, Roman Demidov, says, “We think that implementation of blockchain to the business model of world known companies will bring more crypto users. The market will grow. And people will learn more about the blockchain.”
Bridging the gap
Online businesses like Amazon or a brick-and-mortar businesses like Starbucks make an impressive presence in the cryptocurrency industry. They are recognized brands and have a major following.
Jean Pierre Rukebesha, co-founder and CFO of GN Compass, says, “Amazon and Starbucks joining the blockchain revolution is bridging the gap and may be what the world has been waiting for to confirm their passage towards blockchain and cryptocurrency driven economies.”
He further adds, “For a start, when Amazon speaks, everybody has to listen especially the regulators and all those who have been on record preaching doom and calamity brought by cryptocurrency. Second, for the world community, it is great, from an educational point of view – Bill Gates vs Jeff Bezos! It is your call.”
Mainstreaming of cryptos
More than $300 million was raised through ICOs from 2014 to 2016, with 64 major ICOs held in 2016 that raised a total of $103 million. Five of the largest ICOs in 2017 raised a total of $966 million. Cryptocurrency is a novel asset that is still in its infancy, and need to grow.
CEO of ClearCoin, Jay Singh, says, “If Amazon or Starbucks started their own cryptocurrency, it would be one of the all time greatest mainstream signals of validation for the crypto economy. These companies could easily surpass Telegram’s ongoing $1 billion ICO.”
Disclaimer: David Drake is on the advisory board for most of the firms mentioned or quoted in this article.