A number of companies are involved in the deal
Starbucks is jumping on the cryptocurrency bandwagon. The coffee company, based in Seattle, is working together with Microsoft and leading global exchange Intercontinental Exchage, BCG and others to launch a new company that will be called Bakkt. Bakkt will have a new digital platform that allows Starbucks’ customers to pay using bitcoin and even other digital currencies.
The platform will enable consumers and institutions to buy, sell, store and spend cryptocurrencies on the global network by this November. The platform converts bitcoin and others into US dollars to buy a Cold Foam, Cascara Cold Brew, or anything else at Starbucks.
Maria Smith, vice president of partnerships and payments for Starbucks 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. 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.”
Because of their volatility many critics feel cryptocoins are not suitable for payments. Just this year, bitcoin has lost about 50 percent of its value and can move up or down hundreds of dollars in a day. However, with this development bitcoin could be helped to become more of a competitor for fiat currencies. It could be bullish for its price as well.
Move could be a benefit for bitcoin and other cryptocurrencies
Brian Kelly, founder and CEO of BKCM said: “It’s very big news for bitcoin because people say, ‘Where can you spend it?’ Now at every single Starbucks. Starbucks is seeing some kind of demand for acceptance of crypto and bitcoin, and to tie up with a huge regulated institution like the ICE is really positive for the space.” Some retailers have long accepted bitcoin. Overstock.com was first to accept it back in 2014. Expedia and Shopify also accept cryptocurrency as payment. BKCM is an investment firm specializing in the block chain and cryptocurrency areas.
Starbucks
Wikipedia describes Starbucks as: “Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of 2018, the company operates 28,218 locations worldwide…Starbucks locations serve hot and cold drinks, whole-bean coffee, microground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products,..Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks are also sold at grocery stores. ”
While the first location outside of North America was in Tokyo in 1996 overseas locations now are almost a third of all their stores.
Intercontinental Exchange ICE
ICE is a US company that owns numerous exchanges for financial and commodity markets. It operates 23 regulated exchanges and market places. There are ICE futures exchanges in the US, Canada, and Europe. They include the Liffe future exchanges in the EU, the New York Stock exchange equity options exchanges and OTC energy, credit, and equity markets.
The company also owns 6 central clearing houses in Europe, Canada, Singapore, and the Netherlands. The ICE Clear Credit and the The Clearing Corporation have offices in New York city, London, Chicago, Houston, Winnipeg, Amsterdam, Washington DC, San Francisco and Tel Aviv.
