An undisclosed source reveals that Bakkt, the ICE affiliate and the firm that was approved the US CFTC to list physically delivered Bitcoin Futures, is planning on tackling concerns that impede crypto adoption and spur real-world use case.
As such, it is rumored that Bakkt is working on launching a product and test launch first with Starbucks, an authority in retail, enabling users to efficiently and conveniently settle transactions in a speedy and safe manner.
App to Launch in H1 2029: Blandina
In late October 2019, Bakkt announced that it will commit on building consumer applications for digital assets before test launching it with one of their partners at a tentative time in H1 2020.
Impressive, this was a positive development that instilled hope for Bitcoin holders and enthusiasts when asset prices were cratering and looked likely to fall below the all-important support at $6,000.
Through a blog post, Mike Blandina, the Chief Product Officer, said:
“Bakkt’s approach to secure technology, privacy and innovation means that we are an advocate for consumers who have yet to enter the digital asset space, and for merchants who want to accept new, efficient forms of payments without increasing risks.”
Bakkt to Test Bitcoin Settlement with Starbucks
The source says Bakkt will have the upper hand and might be the first firm to launch an application that will allow users to safely and conveniently pay for goods and services via partners.
To achieve this difficult feat, it is said Bakkt will insure funds in their app in such a way that a merchant will instantly receive payment from Bakkt which will turn to be reimbursed once the BTC transaction reaches the merchant’s account.
“For the everyday person there’s going to be an app for iOS and Android, with this you can buy select cryptocurrencies, or use it as wallet and simply deposit cryptocurrency obtained elsewhere. But this wallet isn’t going to be marketed as ‘storage’ like others – this wallet is where you put the crypto you want to spend.”
“The other half of will be the merchant services. The goal here is for any business to be able to implement this without any learning curve. Any business that currently takes Apple Pay or Samsung Pay – their employees already know everything they need to know. Bakkt basically pays for it, then gets reimbursed a couple minutes later when the crypto transfer is complete”
This instantaneous release of funds allows the merchant escape price volatility ensuring that he/she receives pay as charged. Upon launch, the application will be tested at Starbucks.