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Why Is Starbucks Not Allowing Bitcoin Use Despite Its Pro-Stance?

Though Starbucks might have taken a pro-stance towards bitcoin, the company is yet to allow the acceptance of the digital coin in its store. This assumes significance since the company was reportedly trying for an alliance with the Bakkt ecosystem that would enable it to accept the virtual asset in its stores. However, the firm has extended its support to customers wanting to exchange their digital coins for fiat to spend in more than 27,000 cafes.

Trusted Relationship

For Bakkt, Starbucks is the primary retailer and was accorded the role of not only creating trusted but also regulated working alliance with clients. That is in case clients want to exchange their bitcoin so that they could spend in their retail stores, bitcoinnews.com reported. The price of bitcoin is facing selling pressure due to several reasons. One among them is the delay in getting approval from the SEC for the launch of ETF with a clear focus on cryptocurrencies.

There were some misleading heads in respect of Starbucks alliance with Microsoft Corporation enabling customers to pay Frappuccinos through bitcoin. This was completely misunderstood about the dynamism of the scheme apart from presuming that the digital currency could be used to buy goods directly from the company. However, this has not happened though the company is known to support the initiative. This will undoubtedly impact the adoption rate of the virtual asset as it occupies a tiny part of the global economic scenario.

Starbucks spokesperson told the media to clarify that the alliance is the reaffirmation that the cryptocurrency exchange is just as a platform to change digital currencies into the dollar. This is accepted by the café chain while not ruling out the possibilities of accepting the virtual asset in the future. Other outlets of the company too could accept in a similar fashion. The Coffee firm indicated that it would not mind in considering customers’ requirements.

At the same time, the company is keen to understand and follow the changing regulations in respect of the virtual assets. Starbucks VP of partnerships and payments, Maria Smith, termed the company’s role as critical during the Bakkt’s early stages. The venture is termed as a regulated platform with the objective of bringing in the digital currency to a mainstream audience of its founding members. This included the Intercontinental Exchange (ICE) and Microsoft.

Unlock Potentials

Kelly Loeffler, CEO of Bakkt, termed its aim as lending a helping hand to release “the transformative potential of digital assets” on a global scale. The company’s recent release indicated that the current regulation from the regulators allow it to facilitate trade only in respect of bitcoin to fit. That is mainly because the company considers it as the most liquid virtual asset firm.

In its statement, the company said, “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.” In any case, a crypto investor, Nash Basel, believes that the cryptocurrency will stay here and could become a standard currency. Therefore, it is tough to ignore.

Joel is an entrepreneur specialized in the international business development and project management. He graduated from Indiana University’s Kelley School of Business with a degree in Finance and International Business. He is currently working on decentralized autonomous organization (DAO) along with SocioVibes.