Amazon introduces "Amazon Coins" for some reason

A new currency, in case you don't already have enough currencies.

Amazon is launching its own currency and I'm not entirely sure why.

The company announced the creation of "Amazon Coins" with the intention that they be used for microtransactions on Kindle Fire apps and games. One Amazon Coin will be worth exactly one cent, and to incentivise developers to include the currency, Amazon will be giving "tens of millions of dollars" worth of coins to US customers when they're launched. Amazon will take a 30 per cent cut of all transactions using Amazon Coins, as it does with sales on its store.

It's not really clear why Amazon feels the need to do this, however. The company has built up an incredibly comprehensive database of payment information from customers — a market advantage shared by Apple — and has always apparently been happy stomaching the credit card fees that eat away at micro transactions normally. That is the normal reason for requiring an alternative currency, because it ensures that people spend their money in multiples of some large amount — in effect, it imposes a minimum spend of the smallest possible top-up.

Similarly, some companies also like the advantage of controlled currencies in abstracting away the true cost of purchases. Microsoft Points, for example, are the currency used by XBox Live. An 800 points card costs roughly £7.99, but a 2100 points card costs £16.87. As a result, it's hard to keep track of your spending on the service. Is a game costing 1500 points a good deal? A bad one? Sometimes the maths get tricky. Yet 1 Amazon point is 1¢. So that can't be the reason.

All should become clearer once the company launches and things like developer restrictions and purchasing practices are announced. But for the time being, we just have to wait and see.

Photograph: Getty Images

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

Photo: Getty
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Theresa May is paying the price for mismanaging Boris Johnson

The Foreign Secretary's bruised ego may end up destroying Theresa May. 

And to think that Theresa May scheduled her big speech for this Friday to make sure that Conservative party conference wouldn’t be dominated by the matter of Brexit. Now, thanks to Boris Johnson, it won’t just be her conference, but Labour’s, which is overshadowed by Brexit in general and Tory in-fighting in particular. (One imagines that the Labour leadership will find a way to cope somehow.)

May is paying the price for mismanaging Johnson during her period of political hegemony after she became leader. After he was betrayed by Michael Gove and lacking any particular faction in the parliamentary party, she brought him back from the brink of political death by making him Foreign Secretary, but also used her strength and his weakness to shrink his empire.

The Foreign Office had its responsibility for negotiating Brexit hived off to the newly-created Department for Exiting the European Union (Dexeu) and for navigating post-Brexit trade deals to the Department of International Trade. Johnson was given control of one of the great offices of state, but with no responsibility at all for the greatest foreign policy challenge since the Second World War.

Adding to his discomfort, the new Foreign Secretary was regularly the subject of jokes from the Prime Minister and cabinet colleagues. May likened him to a dog that had to be put down. Philip Hammond quipped about him during his joke-fuelled 2017 Budget. All of which gave Johnson’s allies the impression that Johnson-hunting was a licensed sport as far as Downing Street was concerned. He was then shut out of the election campaign and has continued to be a marginalised figure even as the disappointing election result forced May to involve the wider cabinet in policymaking.

His sense of exclusion from the discussions around May’s Florence speech only added to his sense of isolation. May forgot that if you aren’t going to kill, don’t wound: now, thanks to her lost majority, she can’t afford to put any of the Brexiteers out in the cold, and Johnson is once again where he wants to be: centre-stage. 

Stephen Bush is special correspondent at the New Statesman. His daily briefing, Morning Call, provides a quick and essential guide to domestic and global politics.