Wednesday 28 July 2021

Bitcoin Continues Bull Run As Amazon Creates Digital Currency Position

 The price for bitcoin skyrocketed after Amazon created a digital currency position.

The e-commerce giant posted an advertisement for a “Digital Currency and Blockchain Product Lead” on its hiring platform. The listing seeks a person who wants to leverage “domain expertise in Blockchain, Distributed Ledger, Central Bank Digital Currencies and Cryptocurrency to develop the case for the capabilities which should be developed, drive overall vision and product strategy, and gain leadership buy-in and investment for new capabilities.”

As a result, both bitcoin and dogecoin rose more than 14% between Sunday and Monday afternoon.

CNN Business detailed:

Typically, when Amazon is rumored to enter a new market, stocks of soon-to-be rivals tumble. But Amazon’s job listing had the opposite effect Monday, generating buzz about the tech company’s future involvement with cryptocurrencies and its potential to further legitimize the nascent digital currency sector…

The conversation surrounding cryptocurrencies has become more prominent in corporate America this year. Although Tesla founder and CEO Elon Musk’s tweets have incited whiplash in the crypto space, the company’s initial $1.5 billion investment in bitcoin helped legitimize cryptocurrencies as an investment. Musk recently said he’s invested in bitcoin and wants to “see it succeed.” And during earnings conference calls this year, Wall Street analysts have peppered executives at high-profile companies about possibly entering the bitcoin space.

“We’re inspired by the innovation happening in the cryptocurrency space and are exploring what this could look like on Amazon,” a spokesperson for Amazon told CNN Business. “We believe the future will be built on new technologies that enable modern, fast, and inexpensive payments, and hope to bring that future to Amazon customers as soon as possible.”

Other companies have begun experimenting with various bitcoin initiatives. For one, investment bank Morgan Stanley created a bitcoin fund by which its wealthiest clients can speculate on the asset. For another, PayPal began facilitating payouts with bitcoin for various vendors.

The most recent bull run for digital currencies arrives several weeks after China implemented new restrictions upon their official use. Government authorities recently shut down mining operations in the southwestern part of the nation, causing prices to slide.

In the United States, Federal Reserve Chair Jerome Powell signaled an openness to a “central bank digital currency” during recent testimony to Congress. Nations such as EcuadorThailand, and Saudi Arabia — as well as China — have discouraged the use of cryptocurrency while creating their own CBDCs. 

Although the Fed initially planned to unveil a report about a potential “digital dollar” in July, Powell — who is still “legitimately undecided” on the matter — said that the release of the central bank’s findings will be delayed until early September. 

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