- Starbucks will “accept” Bitcoin which will be instantly turned into fiat
- Scalability remains the Achilles Heel for the Bitcoin network
News making rounds since the past few days is that Starbucks is set to introduce support for Bitcoin in that it will accept the premier cryptocurrency as a means of payment. However, the statement is not entirely true. Yes, Starbucks will “accept” bitcoin but not in the true sense.
Starbucks Will “Not really” Accept Bitcoin
Mainstream adoption of cryptocurrencies has often been touted as the watershed moment that would finally result in their widespread use, and what better way for it than to get your morning coffee by paying in Bitcoin?
Against that backdrop, reports emerged last week that Starbucks will soon start accepting Bitcoin as a means of payment as part of an equity deal with physical Bitcoin futures platform Bakkt.
According to an article by The Block, the two entities reached a deal which would “allow coffee-lovers to pay in-store” using special software from Bakkt.
However, a new report by The Next Web posits that this is only partially true. The media publication reached out to Starbucks to know more about the subject matter, to which a spokesperson from the company replied:
“Our role as the flagship retailer for Bakkt is to consult and develop applications for customers to convert their digital assets into US dollars, which can then be used in our stores. We anticipate that a range of cryptocurrencies will gain traction with customers and, through our work with Bakkt, we will be uniquely positioned to constantly consider and offer customers 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.”
A number of things can be inferred from this response by Starbucks representative.
Firstly, yes, Starbucks will indeed “accept” Bitcoin, but it will be immediately converted into fiat of corresponding value and credited to the company’s account. Not really “mainstream adoption” of the premier cryptocurrency per se.
Further, it also means that Starbucks, at some level, is still apprehensive of holding digital currencies due to their extreme wild swings and novel idea. Also, if analyzed with a clear mind, it would be preposterous to assume that the Bitcoin network will be efficient enough to handle hundreds of thousands of transactions of Starbucks on a daily basis.
Nevertheless, the association of Bitcoin with Starbucks is by itself no small feat. More awareness about the top cryptocurrency will definitely help its cause in the long run. Perhaps you’d want to brush up on your BTC knowledge for the next time you go on a date to a local Starbucks outlet.
