Everyone in the crypto space awaits the almighty ‘adoption.’ However, no one knows when this will happen in particular. As more and more businesses adopt cryptocurrencies, it has caused no terrific impact on crypto assets in general as people have expected. Instead, it has caused prices to fluctuate at will. Nevertheless, just like other times, the crypto community believes there’s still hope, which lies with major corporations. As we all await this time, it’s therefore important to know what the impact will be when major players join the crypto race.
Amazon, Alphabet (Google’s parent company), Apple, and Facebook, these are the names you have heard time and again. You probably own products from one or all of them as they’ve become a household name, same with everyone else, globally! Therefore, this outrightly shows that they are the largest companies in the world that drive the market. They know this, and so do we – consumers of their product.
But why haven’t these industry leaders, except Facebook taken a bold step into adopting cryptocurrency payments given that a significant percentage of crypto investors are their loyal customers? Hey, that’s equivalent to leaving money on the table when there’s an opportunity for the taking. What if they made their currency? They could offer a more seamless method of payment without physical restrictions. Just think about it!
Bitcoin, the first cryptocurrency launched in 2009, opened a whole new world of payments. It broke the location barrier, allowing even the unbanked gain access to financial services. What’s even more intriguing is that it took away the hurdles involved in cross border payments at an even cheaper cost and faster processing times, thankfully with the help of blockchain technology.
Now, the distributed ledger has become the best technology, Amazon, Google, Apple, and Facebook can fall back on in terms of online and offline payments. They need speedy payments, accessible to just about anyone, and as easy to use as possible. A technology that will rival existing ones and still give them a bang for their buck is what we’re getting at. Thus, the internet has undoubtedly changed the business world, but cryptocurrency technology can change the payments industry.
Amazon is one of the largest eCommerce platforms in the world. The Seattle-based company’s cash on hand for the quarter ending as of June 30, 2019, was reported to be $41.463B. However, its diverse payment methods, including Visa, Mastercard, American Express all scream Banks!!! Banks!!! Banks!!! What if Amazon could be less dependent on banks by creating its cryptocurrency? The value of such an asset could be determined by the upfront capital tied to it.
Google is known for its search engine, Android OS, among others. The US-based company’s cash on hand for the second quarter of 2019 sits at $117B. Google also has an online payment system, Google Pay which shows the company’s interest in improving payments for its goods and services. Nonetheless, it has enough cash at hand to back a proposed virtual currency project that could be used to purchase items on its Playstore and eCommerce store. Advertisers would also find it easy to pay for AdSense, AdWords, amongst others. But most importantly, it’s demand will drive the asset up several percents in a short time.
The American technology company, Apple, is best known for its iOS devices such as the iPhone and iPad. It currently has Apple Pay for mobile payments and Apple Financial Service for lending. On July 30, 2019, Apple, in its fiscal third-quarter earnings report, revealed it has $210.6 billion cash on hand. Thus, it takes away the need for an ICO or IPO since it has enough money to back its asset. If Apple launched a cryptocurrency, subscriptions for iTunes, App Store, Apple News, and other services would be a breeze.
The company has already begun something big with its Libra cryptocurrency, which has kept financial regulators across the globe on their toes. It had $48.596 billion cash on hand by the second quarter of the year. With Libra, it aims to offer a global currency that will enable people in unbanked countries to access financial services. Here’s a big idea, if the social media giant succeeds with its Libra asset, it could set the trend for other major companies to dive in.
What Does This Mean for Cryptocurrencies?
Cryptocurrency has garnered massive adoption in the past few years even without these industry leaders stepping in. Now, imagine what it would be like for the big players to be in the market and also exploit the technology of blockchain? Its result would be unimaginable! That could double, triple, and basically, kickstart an adoption that is uncontrollable.