Bitcoin

Starbucks Will Allow Users to Buy Coffee Using Bitcoin

Starbucks, the largest coffee chain in the world with the highest numbers of outlets globally, is all set to shake hands with the largest cryptocurrency of the world by market cap, bitcoin.

Although previously the coffee chain didn’t stand firm on its promise of accepting bitcoin payments, this time, with the support of Bakkt, Starbucks is very likely to deliver on its promises. Since last time, the dynamics of the space have changed a lot this time because the coffee chain has been declared as the first launch partner of Bakkt’s crypto payments service.

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A bitcoin futures exchange and digital assets platform, Bakkt, was founded by the parent company of the New York Stock Exchange (NYSE), Intercontinental Exchange (ICE), back in 2018. Regarding the latest development and collaboration with Starbucks, Bakkt commented:

We’re now focused on the development of the consumer app and merchant portal, as well as testing with our first launch partner, Starbucks, which we expect in the first half of next year.

Like setbacks faced by Starbucks, Bakkt also experienced several delays and constraints before getting launched in July 2019. Initially, the company planned to open its futures exchange in 2018 but couldn’t do so successfully.  Particularly due to reasons such as regularity issues, insufficient preparation and a small amount of public interest, the launch of futures exchange got delayed again and again until July 2019.

Aiming to spread the use of cryptocurrencies by allowing users to utilize its network, Bakkt is taking a step further to support mass adoption by exposing the locals to bitcoin and other cryptocurrencies. It was estimated that as much as 30,000 stores across the globe belonging to Starbucks would be trading bitcoin exclusively with the customers.

The success of bitcoin and the vision behind it demands local people to have access to bitcoin. As Starbucks partners with Bakkt, a prospective development for making bitcoin a success is initialized.  Moreover, it is readily possible for other companies to follow Starbucks by accepting bitcoin payments as well.

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Although bitcoin will be accepted as a medium of exchange in mid-2020 at Starbucks, the volatile nature of bitcoin doesn’t make it an ideal mode of payment. As bitcoin skyrockets at one instance and drops down on another, its sharp rising and falling nature may result in a loss for the retailer or the customer.

Let’s see if Bakkt is able to spread cryptocurrencies worldwide while making it accessible for locals belonging to different places despite the volatile nature of bitcoin.

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Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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