Topic: [2019-03-06] Starbucks Unveils Key Detail about its Secretive Bitcoin Strategy - page 2. (Read 211 times)

The key word here is "initially", Starbucks is a global brand and they try their best for their other stores (internationally) to replicate what they are offering to the United States. I remembered when Starbucks only limited their Starbucks cards in the US now most of the Starbucks internationally have them which also comes with their app. I also remembered the time when I only see the Pumpkin Spice Latte drink only in memes but now I managed to taste it locally in one of our SB branches. This only shows that they want to offer the same service as they can on all of their stores which I think will also happen with their BTC payments initially starting in the US.

It raises a major question though, Bakkt converts people's coins to fiat, then uses that fiat to settle the Starbucks payment. Isn't that a taxable event within the US? Don't forget that this is just the very beginning. At one point I do expect a large number of multinationals to participate, and the amounts concerned will greatly exceed that of a coffee and a muffin.

In the end, it's more of an empty marketing gimmick than something that provides much usefulness, especially if turns out that you must have an account with Bakkt in order to utilize that payment option.

We have to start somewhere.

I think it would be unrealistic to expect Starbucks, or any major company, to start accepting bitcoin from nowhere, along with all the difficulty and expense of setting up payment terminals, infrastructure, cold storage, taxes, etc. As you say, they are using Bakkt as a payment processor, and so Starbucks will only receive fiat, for the time being. However, another article I read here included this quote:

It's not the ideal situation yet (which would be paying Starbucks directly with bitcoin), but it's a step in the right direction. If nothing else, it's great advertising for bitcoin payments to be available at every Starbucks store in the US.

An article in The Block yesterday includes the following statement: “Only U.S. customers will be able to pay in bitcoin initially.” They’re referring to Starbucks’ recent deal with Bakkt, the great hope of the crypto industry, which might manage to pull off the first crypto ETF. The deal gives Starbucks significant equity in Bakkt, but at no point does it actually require Starbucks to accept Bitcoin. And, for its part, Starbucks reportedly has no intention of doing so – at least not in the conventional manner.
Starbucks: We’ll Help You Convert Crypto to Cash

The company told The Next Web that rather than accept crypto directly, it will create more ways for customers to convert bitcoin and other assets into fiat, which can then be used at their stores (emphasis added):

    “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.”

So, some type of gift card situation is what’s brewing at Starbucks. Some kind of Bakkt-powered seamless payment platform seems possible. As regards the Seattle-based coffee giant, however, the notion of a Bitcoin QR code at checkout seems far-fetched.


CCN | https://www.ccn.com/starbucks-unveils-key-detail-about-its-secretive-bitcoin-strategy