Starbucks Works with Bakkt to Enable Bitcoin Payments

Mar 06, 2019 at 17:38 // News
Author
Coin Idol
Starbucks’ partnership with Bakkt was initially revealed in August 2018. It is aimed at enabling bitcoin payments.

From the new report, it seems that there is substantial equity held by Starbucks – the biggest coffee and snack provider globally – in the forthcoming cryptocurrency platform Bakkt. The company has earned its shares as part of a jointly constructive agreement. Starbucks’ partnership with Bakkt was initially revealed in August 2018. It is aimed at enabling bitcoin payments.

The giant now plans to install Bakkt’s payment software in all its stores such that clients can make payments using cryptocurrencies such as Bitcoin (BTC), Ether (ETH), Ripple (XRP) and others. The system will be changing crypto to fiat such that cryptocurrencies are kept off of the company’s account. 

Bakkt is also considering to provide cryptocurrency-related services in 2019. The Intercontinental Exchange owned firm is soon establishing physically-backed BTC futures undecided approval from the United States CFTC.   

In August 2018, Maria Smith, Vice president of Partnerships and Payments Starbucks, stressed the company’s strategies with Bakkt, he said:   

“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.”   

Starbucks isn’t Accepting Crypto   

However, the company has come out to refute all the rumors circulating the social media platforms. The spokesperson for the brand revealed:   

“Our role as the flagship retailer for Bakkt is to consult and develop applications for clients to convert their cryptocurrencies into USDs, which can then be used in our stores. We anticipate that a range of digital assets will gain traction with clients and, through our work with Bakkt, we will be uniquely positioned to constantly consider and offer clients new and unique ways to pay seamlessly, at Starbucks. As we continue to move forward with this work, we anticipate we’ll have more to share in the coming months.”   

This, therefore, shows that Bitcoin adopters would use a third-party intermediary system to carry out acquisitions and purchases while using cryptocurrencies. The retailer is ready to take digital asset risks by directly holding any cryptocurrencies.   

Crypto Rivals Fiat   

But it will rather swap any crypto it gets for fiat currency, mixing the funds back into the capitalist machine which strong crypto maniacs fervently oppose.   

Generally, Starbucks is a leading retailer for Bakkt, whose main drive is to enable customers and firms to trade crypto and convert it into fiat. Microsoft is also involved.

The company enabling clients to change their digital currency into traditional money is definitely not the same allowing payments in crypto, but there is an argument to be made that crypto could merely not manage even a small percentage of its commercial business with instantaneous, on-chain transactions.