Amazon introducing its own currency. I expect Apple to follow.

[PracticalMac]

Amazon Coins: A New Virtual Currency for Kindle Fire.

Seems to be based on the successful Bitpay, and is getting attention on radio and business sites..

Such a service can transcend world coinage, be universal money.

Imagine buying an iTunes card for 100 "Apple buxs", send it to someone in Madagascar and they can buy music and apps.

No restrictions due to political boundaries.

Apps that actually PAY for services, like "iPolls" (SurveyHead), can offer "Apple buxs" instead of cash which can be used instantly, instead of transfer to PayPal, then to your bank account.

PayPal could start dealing with "Apple Buxs" too.

Yes, it is like store tokens, to a global scale.

I see no reason this cannot work.

EDIT: In case you did not notice, Amazon is using this scheme to entice developers to make apps for Kindle Fire, but it can do much more.

 

[Solomani]

I'm registering for a trademark for iCoins as we speak....

 

[maxosx]

Apple's capable. Yet extremely stubborn if not the first to market. Jealousy & ego played an overly large part in Apples decisions of the past. Luckily that's changed during this new era. The present CEO's confident & measured approach, bodes well for the future of Apple.

 

[SilentPanda]

Yet extremely stubborn if not the first to market.

They're okay with not being first to market so long as they can make you believe they are first to market.

 

[Bubba Satori]

Seems like a good idea.

 

[eric/]

Not sure I like it. Any company which requires this will be one I no longer do business with, but if they want to do it alongside normal transactions, well, go for it.

 

[roadbloc]

Not at all keen on this idea one bit. I doubt I'll be using Amazon's currency, I'll continue with my standard card transactions.

 

[ChristianVirtual]

Seems (as usual) US only. So yes, no political boundaries between Nevada and Utah

What I read in the short article you linked I don't see so much difference to regular gift cards or "Audible Credits".

I bet governments and national banks will not be supportive when companies starting international money systems without their control. Not even talking about different tax laws, customs.
Marketing only. Finally we will all still pay in ¥€$ or whatever local currency you use today.

 

[ucfgrad93]

Not at all keen on this idea one bit. I doubt I'll be using Amazon's currency, I'll continue with my standard card transactions.

As will I.

 

[irDigital0l]

So like Microsoft Points?

No, it sucked even Microsoft knows it. Just confuses customers.

Trying to find a way to "innovate the dollar sign" is just wasting your time.

 

[eawmp1]

I think in dollars. Chips get me into trouble in Vegas and I am sure Amazon's currency will too. I'll pass.

 

[pdjudd]

So like Microsoft Points?

No, it sucked even Microsoft knows it. Just confuses customers.

Trying to find a way to "innovate the dollar sign" is just wasting your time.

Especially since it make it very easy to change the exchange rate and set it so that you give more money to the company than actual worth - which gets hard to determine when the company controls everything. With dollars, we can shop elsewhere with little effort. Amazon bucks are only good with Amazon.

 

[rhett7660]

Apple's capable. Yet extremely stubborn if not the first to market. Jealousy & ego played an overly large part in Apples decisions of the past. Luckily that's changed during this new era. The present CEO's confident & measured approach, bodes well for the future of Apple.

How do you figure? They were not the first for iPods? Computers? Etc,..,,

 

[pdjudd]

It is true. Mp3 players (in general) existed before the iPod and Apple did not create the first personal home computer.

Of course MP3 players were very meh before the iPod launched and most personal computers were not very popular until the Macintosh really took off. Apple's products largely stood on the shoulders of predecessors, but they did things much better than everyone else.

 

[Bernard SG]

Imagine buying an iTunes card for 100 "Apple buxs", send it to someone in Madagascar and they can buy music and apps.

No restrictions due to political boundaries.

The restrictions that exist on iTunes international operations have little to do with currencies and foreign exchange and everything to do with the rights owners refusing to enter the 21st century and to allow for global licenses.

By the way, the Amazon Coin is designed for Kindle Fire Users and the Kindle Fire is practically US only, thus far.

 

[Solomani]

This is just re-inventing the wheel... all.... over.... and over.... again.

I don't see any big advantages for inventing a new virtual currency that is exclusive to Amazon. Well, except that Amazon Inc. will find a way to benefit THEMSELVES from this idea. However, it is unlikely to benefit anyone else.

 

[elistan]

Amazon's FAQ says that one Amazon Coin = one US cent. Which makes me wonder "What's the point?" They talk about how this is US-only "at launch." If they expand this to other countries and currencies, how will they handle exchange rates? Will it turn into a situation where is takes, say, five Australian cents to purchase on Amazon Coin, bypassing exchange rate variations altogether?

 

[PracticalMac]

Economies transcend boundaries, and individual countries have more prosperous economies if they simplify or even do away with any trade restriction.

See the Euro Union and NAFTA "Economic Zones".

Sure, they have failings (for different reasons), but the gains so far outweigh the faults, otherwise they would have vanished years ago.

Every year BILLIONS of $$$ or €€€ or ¥¥¥ or LLL or Yuan (China) are transferred over seas, and money exchanging companies earn MILLIONS in profits from those exchanges.

The very fact Australia is investigating Apple and others over suspected price gouging is proof of the suspicion others toward Apple.

If media is now sold under "Apple Bux" and not local price, then the playing field is leveled, and it is accessible world wide, anyone in one part of our connected world can buy media from another.

Banks can still get in on the action, being exchanges for cash to A-Bux.

Yes, their is some tremendous challenges to get this to work, mainly legally, but a successful deployment will be a WIN for all.

Apple is perhaps the only company in the position to do this, with its huge international media offering. And if they succeed, they will be prosperous for decades.