While many believe, Starbucks represent something beyond a cup of coffee – now they would probably sip its coffee with the taste of crypto. Although Starbucks’s name is already associated with the launch of Bakkt Bitcoin Futures, the firm had recently made a significant investment to become Bakkt’s first merchant for its customers.
Integrating Bitcoin Payments in Starbucks Stores
As per the reports, Starbucks holds a good amount of equity in Intercontinental Exchanged backed Bakkt – however, the specific amount is still out of sight but reports suggest ‘disproportionately high given that they did not make a cash investment’.
The report was first published on TheBlock and eventually shared on a social media by Mike Dudas Twitter enthusiast, stating;
SCOOP: @Starbucks received significant equity in @Bakkt in return for commitment to allow bitcoin payments in store in 2019 [GENESIS] via @i_woodford https://t.co/OBZE1vOzeo pic.twitter.com/rPqXXZVNlU
— Mike Dudas (@mdudas) March 4, 2019
While the well-known coffee brand holds significant equity – conversely – it is investing heavily in cards and app that would make it one of the early merchant of Bakkt crypto platform. By doing so, customers will be able to pay for the items at Starbucks with digital assets. Reports also mentioned that these assets will then be converted into fiat citing the volatility issue and then it would keep them off of the Starbuck’s books.
To remind, previously, Starbucks clarified to the rumors who claimed Starbucks was receiving bitcoin for Coffee – but the explanation made it clear that they’re just partnering with Bakkt platform and not accepting Bitcoin- eventually, Bakkt will enable its users to trade and convert the BTC into fiat currencies and then pay out for items at Starbucks.
“As the flagship retailer, Starbucks will play a pivotal role in developing practical, trusted and regulated applications for consumers to convert their digital assets into US dollars for use at Starbucks.
To note, Bakkt’s Bitcoin future platform is still on hold due to regulatory approval (pending from the US Commodity Futures Trading Commission) – nevertheless to add that it carries a number of plans related to crypto services to roll out in the year 2019.
The Positive Move
The indirect use of Bitcoin on branded platforms like Starbucks which as high profile customers since a decade and more, would more likely influence the value of Bitcoin.
But probably well worth it on the long term. The Starbucks angle was the most interesting thing about the Bakkt announcement.$BTC needs more use cases and more retail adoption. https://t.co/xUd8L07yK8
— Richard Johnson (@_richjohnson) March 4, 2019
However, at press time the market is favoring across many cryptocurrencies, having the average trading volume of BTC as $66,402,996,992 with the positive mark of 0.59 percent over the past 24 hours. Additionally, as per the data from Coinmarketcap, one Bitcoin is trading at $3,778.91 against US Dollar.
Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com