Amazon Launches its own Currency to Compete with The FedSubmitted by bobbyw24 on Wed, 02/13/2013 - 13:51
This month, Amazon launched its own coins — a virtual currency that can be used to buy stuff for your Kindle tablet. It is a very tentative move to start with: more like loyalty points on a reward card than actual cash. But every river needs to start with a spring — and with the web’s mightiest retailer behind it the coins could grow into something significant.
If so, Amazon coins will be far from alone. The virtual web currency BitCoin has already attracted a huge amount of publicity — and is steadily gaining in both circulation and value. After a crash last year — regrettably virtual currencies are just as prone to booms and busts as the real sort — it has steadied at around $25 and has gained acceptance.
There are virtual currencies swapped on games such as Second Life and Farmville that may one day escape into the real world. At the time of the launch of the iPhone 5, there was speculation that Apple AAPL +0.02% would include a banking function, and perhaps even a currency — an iCoin would, of course, be much the same as everyone else’s money except twice as expensive and really cool to look at.