The digital money market has been warming up for big investors to jump in and adopt digital coins as a form of payment. Some of the big names including Alibaba (NYSE:BABA), PayPal (NASDAQ:PYPL) and Amazon (NASDAQ:AMZN). With increased real world use cases trickling in from all directions, these three investors seem to have a different opinion; a big no to cryptocurrency mode of payments.
This seems to complicate matters for the cryptos at a time when the market is struggling to get back on its feet. Digital coins have been allowed in several countries and their exchanges regulated. There has been a lot of speculation that Alibaba, PayPal and Amazon (AMZN) are warming up to cryptos as one of the most affordable, safe and fast way of making payments internationally.
Negative Limelight for Digital Coins
There has been a lot of negativity towards the digital coins and this has sent the market crashing with Bitcoin getting hit the most. This has seen the price drop from the support level of $8,000 to a law of $6,400 a few days ago. This has send a Ripple (XRP) affect cross the entire market that saw 86% of all coins and tokens in the top 100 by market cap trade in the red in the past 24 hours.
It is a competitive world and each company is trying to keep to its lane and break even. Most mainstream companies see digital coins from a disruptive perspective rather than a complementary way to make payments. According to the founder and executive chairman at Alibaba (NYSE: BABA), Jack Ma “Bitcoin is a bubble”. He adds that Alibaba is not going to use Bitcoin as a mode of making payments.
“We should be cautious about Bitcoin. Its underlying technology however is really powerful. I pay more attention to a cashless society and the blockchain technology. And am not shameful that I don’t know about Bitcoin.”
This is expected and no business leader would want to front for another entity that has some competitive characteristics. It will be hard for Ma to support a system that is a threat to some amount of revenue stream to their e-commerce site.
PayPal and Cryptocurrency as Mode of Payment
Many crypto enthusiasts thought that PayPal (NASDAQ: PYPL) would soon start using digital coins on its platform. Rumors have it that it will pick the like of Ripple (XRP) as a payment vessel but the hope have been dashed. According to CTO at PayPal, John Rainey, they are not ready to use Bitcoin as a way of making payments on their platform.
PayPal merchant trade margins are low and this could spell doom to their business given the volatility levels associated with digital coins. The credibility of the digital coins needs some sort of backing in order to get the trust from the largest money processor in the world.
He adds that:
“You could have something that appeals to consumers, but if the merchants don’t accept it, it’s of little value. Right now, we don’t see a lot of interest from our merchants.”
Amazon (AMZN), the largest e-commerce site has also distanced itself from working with digital currencies as well. This has dashed Ripple (XRP) hopes of possible partnership with the global outfit. So far, the specialty retailer has not shown any interest in digital currencies.
War of Words between Cryptocurrency Lovers and Haters
The words of criticism from crypto-haters seem to be rubbing the lovers the wrong way and this will negatively affect the recovery of the market. There are so many theories that seem to continue eroding the investor confidence and the market appears to continue bleeding longer than expected.
However, it is crystal clear that the market needs a clear backing. Once the issue of regulation and volatility are some of the issues that require immediate ironing out for any tangible gains to be realized. However, the success of cryptocurrencies is not limited to Alibaba, PayPal and Amazon (AMZN).