It was expected by several market followers that when Apple unveiled the new iPhone 11 that it would provide some information about its cryptocurrency plans. The Bitcoin price actually increased ahead of the new Apple product launch, in anticipation of an announcement. As Forbes reports, expectations about Apple follow on from news that Facebook is planning to launch its Libra cryptocurrency and based on blockchain technology. In addition, Walmart has filed a patent for a product called ‘stablecoin’, as a further indicator of interest in digital currencies.
As to why Apple is pursuing a cryptocurrency idea is similar to its competitors: stability, ease of use, transparency and a means to collect data about its users. As to why Apple has held back on any announcement, unlike its competitors is uncertain at this stage.
To try and make sense of what is happening, Digital Journal touched base with CoinCorner’s CEO, Danny Scott, who confirms Apple’s interest in digital currency: “Apple revealed their latest line of products, unveiling the new iPhone 11 at their annual Apple event yesterday, however there was no mention of their plans for cryptocurrency.” This is notwithstanding earlier pronouncements where Apple has indicated it is assessing the viability of digital currency.
As to why Apple are interested in some form of cryptocurrency this is, as Scott notes, something the company shares in common with its rivals: “We expect to see more FAANG (the acronym for four high-performing technology stocks in the market – Facebook, Amazon, Netflix and Google) companies exploring cryptocurrency, especially following announcements from the likes of Facebook (Libra) earlier this year.”
Of these major companies, however, Apple seems the most hesitant, according to Scott: -“Apple will remain somewhat skeptical, bearing in mind that they don’t allow customers to use their credit card for the purchase of Bitcoin or other cryptocurrencies at the moment.”
This does not mean that Apple are not making plans, as Scott says: “It’s fair to assume that Apple are most likely exploring cryptocurrencies behind the scenes already, so it will come as no surprise if they announce “Apple Coin” in the near future. We certainly don’t expect to see them embracing Bitcoin anytime soon – given the decentralized nature of Bitcoin, we fail to see how it would fit into the notoriously centralized ecosystem of Apple products and services.”
There are risks with Apple and other tech firms seeking their own digital currencies, according to Scott since the involvement of major corporations goes against one of the inspirations for digital currency in the first place: “If Apple does decide to go down the route of creating their own cryptocurrency, they’ll quickly realize that as long as there is a central authority with control, there is no consumer demand or desire for it. We’ve said it before and we’ll say it again: it’s a waste of time and resources for these big companies to explore cryptocurrencies if all it means is that they are going to try and reinvent the wheel.”
In relation this, Scott tellingly adds: “Apple may very well just be the next big name trying to use cryptocurrency as a solution to a problem that doesn’t exist”
