Many cryptocurrency enthusiasts are eagerly awaiting the day when their tokens and coins of choice will fully enter into the mainstream world of business. In order for this to happen, though, one of the most important catalysts will be the large-scale adoption of cryptocurrencies as a method of payment by major businesses.
Companies like Alibaba Group (BABA), PayPal Holdings Inc. (PYPL), and Amazon.com Inc. (AMZN) have yet to adopt digital currency payment methods in this way. Now, with the digital currency market struggling to regain value after several months of declining prices, some in the community are wondering if these major companies will ever open their doors to the digital token world.
Speculation, But No Hard Answers
In the past two years in particular, there has been rampant speculation that the companies above and other major players in the e-commerce world will move to adopt cryptocurrency payments. However, while there have been subtle signs suggesting interest on the part of many of these firms, there has so far not been any definite plan for them to move forward with this approach. Indeed, some of the biggest companies in the world have taken a strong stance against the cryptocurrency space. Jack Ma, founder of Alibaba, has described bitcoin as a bubble, suggesting that his company will not use the world's largest cryptocurrency by market cap for payments at any point in the future.
PayPal and Amazon?
Leading online payments system PayPal has also seen rumors circulating about its potential move in favor of cryptocurrencies. Still, CTO John Rainey has suggested that his company is not yet ready to adopt bitcoin or other digital currency methods of payments for their platform as of this time. Perhaps one of the reasons behind this thinking is that the volatility inherent in digital tokens could be highly problematic for PayPal's merchant trade margins, which are already quite low. Until digital coins have better support and stability, it's likely that PayPal and similar outfits will not accept them. Rainey explains that "you could have something that appeals to customers, but if the merchants don't accept it, it's of little value," according to Crypto Globalist. Similarly, Amazon has seen a great deal of speculation about supposed plans to accept cryptocurrency payments. As of this time, though, and with the company growing at tremendous rates already, it appears Amazon has little incentive to take the risk.
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.