CZ urges Amazon to start accepting Bitcoin payments

Changpeng “CZ” Zhao, the former CEO of Binance, recently suggested that Amazon should begin accepting Bitcoin (BTC) as a form of payment in response to shareholders’ requests for the tech giant to consider adding Bitcoin to its strategic reserve. CZ posted on X (formerly Twitter) encouraging Amazon to take this step, proposing that accepting Bitcoin as a payment method could serve as a gateway to integrating the digital asset into its reserves. By doing so, Amazon could better understand Bitcoin’s value compared to traditional currencies and gain insights into its potential long-term role in the company’s financial strategy. CZ’s simple suggestion was, “Accept Bitcoin payments?”

This proposal from CZ comes after shareholders of Amazon requested the company’s board to conduct an assessment regarding the inclusion of Bitcoin in its treasury. The idea behind the request is to mitigate risks from traditional financial assets, like cash and bonds, whose yields have been weakening in the face of rising inflation. As a result, the shareholders believe Amazon should consider diversifying its balance sheet with assets that are not tied to conventional finance, such as Bitcoin. This could help protect Amazon’s substantial shareholder value from the diminishing returns of traditional assets.

In a separate interaction on X, Joel Valenzuela from Dash questioned why Bitcoin should be used for Amazon payments, arguing that it is not an ideal payment method compared to other cryptocurrencies due to its slower transaction speed. CZ agreed with Valenzuela’s point, acknowledging that during a recent Bitcoin transaction worth $17.08, he had to wait 15 minutes for the payment to be confirmed by the receiver. Despite this, CZ defended Bitcoin’s role in the payments ecosystem, pointing out that it is still a better option than traditional financial systems like credit transfers, which can be even slower and involve customer service calls when errors occur. He stated, “Still better than TradFi though. I didn’t have to call anyone to fix it. It just worked after 15 min.”

The conversation sparked optimism among many commenters, who supported the idea of Amazon embracing Bitcoin as a payment method and, eventually, investing in the cryptocurrency. As reported by Pinetbox.com on December 8, the National Center for Public Policy Research (NCPPR), a Washington D.C.-based think tank, also proposed that Amazon add Bitcoin to its strategic reserve. The NCPPR’s recommendation came as a response to the weakening of cash and bond yields, arguing that Amazon’s current approach of holding cash and government bonds does not sufficiently protect its billion-dollar shareholder value.

The think tank emphasized that Bitcoin, despite its volatility, could be a valuable asset for Amazon to consider, suggesting that the company should allocate at least 5% of its assets into Bitcoin to hedge against the risks associated with traditional financial instruments. This aligns with the broader trend of large corporations and institutions recognizing the potential of digital assets as part of their diversification strategies.

In conclusion, the idea of Amazon accepting Bitcoin payments and adding it to its treasury continues to gain traction within the cryptocurrency community, with notable figures like CZ advocating for the shift. As more companies explore how to integrate Bitcoin into their financial strategies, the proposal for Amazon to follow suit could set an important precedent in the tech and retail sectors.