Recently a rumour was spread across the crypto space that Starbucks is going to support coffee purchase option through bitcoins. But a spokesman from the company has stated that despite the rumour Starbucks is not going to support bitcoin payments.
Earlier on Friday a new global platform for digital currencies named “Bakkt” was announced by the Intercontinental Exchange (ICE). It was mentioned that Bakkt will be a collaborative project between ICE, Microsoft, BCG, Starbucks and others.
As a result of the announcement, it was assumed by various media outlets that Starbucks is going to support the usage of bitcoin as payment option.
In the clarification made by the spokesman of Starbucks, it was stated this partnership did not mean payments through bitcoin. Starbucks plans on building a framework on which customers will be able to convert their bitcoins into U.S. dollars which can the be used to buy coffees. It was previously assumed that the partnership made by Starbucks with ICE meant it will now support crypto payments directly.
It is important to clarify that we are not accepting digital assets at Starbucks. Rather the exchange will convert digital assets like Bitcoin into US dollars, which can be used at Starbucks,
At the current time, we are announcing the launch of trading and conversion of Bitcoin. However, we will continue to talk with customers and regulators as the space evolves.
It is clearly mentioned in the clarification note that:
Customers will not be able to pay for Frappuccinos with bitcoin,
In the official announcement made on Friday, the intent from Starbucks to support digital currencies was shown. But this did not imply that the brand will be supporting direct payments through bitcoins. The Vice President Partnerships and Payments for Starbucks Maria Smith stated in the official press release of Bakkt that:
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. As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.
Bakkt was announced to provide a global framework for digital currencies. It was initially announced to support the bitcoin as its first use case. Despite falling down to a low value as compared to the start of the year bitcoin is still the most viable option to test. Despite not supporting payment through bitcoin directly, Starbucks is still a partner in the initiative taken by the Intercontinental Exchange (ICE). It is stated in the official press release that:
The Bakkt ecosystem is expected to include federally regulated markets and warehousing along with merchant and consumer applications. Its first use cases will be for trading and conversion of Bitcoin versus fiat currencies, as Bitcoin is today the most liquid digital currency. The effort is designed to address evolving needs in the estimated $270 billion digital asset marketplace.
Bakkt aims at providing a secure and efficient platform for the digital currencies. The chief executive officer of Bakkt, Kelly Loeffler stated that:
Bakkt is designed to serve as a scalable on-ramp for institutional, merchant and consumer participation in digital assets by promoting greater efficiency, security and utility. We are collaborating to build an open platform that helps unlock the transformative potential of digital assets across global markets and commerce.
One of the main purpose of this platform is to build confidence among the asset class to support digital currencies. With more and more developments made in the department of security and regulations, Bakkt is a right step put forward by ICE in collaboration with Microsoft, BCG and others. The chief executive officer and chairman of ICE Jeffrey C. Sprecher stated in the press release that:
In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets,
In a nutshell, although Starbucks will not be considering bitcoin as a payment option directly, it is still a partner in the initiative taken by Intercontinental Exchange (ICE). The importance of Bakkt cannot be denied on the global scale as it will provide the users with a state-of-the-art framework for digital currencies.
Although Bakkt is still on track but Starbucks won’t be supporting direct payments through bitcoin anytime soon.