Amazon is introducing Amazon Coins, a new virtual currency that customers can use to pay for apps for Kindle Fire. Customers in the United States will be able to spend Amazon Coins on apps and most in-app purchase items. Amazon Coins are worth 1-cent, so a $2.99 app will cost 299 coins.
Facebook, Apple, Google and others have tried (and failed) with virtual currencies before, but perhaps Amazon sees the rise and acceptance of Bitcoins as a sign that a new day has come for the rise of the virtual currency model.
To help promote this new currency, Amazon is giving away tens of millions of dollars in Amazon Coins to Kindle Fire users. According to the Amazon Developer’s site, “This money will be burning a proverbial hole in customers’ pockets as they look for places to spend it.”