Blockchain industry reports reveal that coffee giant Starbucks may soon accept Bitcoin as a payment option—though not directly on the blockchain. Instead, transactions will be converted to fiat currency instantly upon receipt.
Key Details of the Starbucks-Bakkt Partnership
According to The Block, Starbucks has entered an equity agreement with institutional cryptocurrency platform Bakkt. As part of the deal:
- Starbucks acquired a significant stake in Bakkt.
- The partnership will focus on converting digital assets like Bitcoin into USD for use at Starbucks locations.
- Transactions will not involve direct Bitcoin payments on-chain but instead utilize Bakkt’s exchange services.
How It Works
- Customers select Bitcoin as a payment method at checkout.
- Bakkt instantly converts the Bitcoin to USD.
- Starbucks receives the equivalent fiat amount.
👉 Learn more about Bakkt’s institutional-grade crypto solutions
Bakkt’s Role and Regulatory Status
Bakkt, a much-anticipated platform backed by the Intercontinental Exchange (ICE), is awaiting final approval from the U.S. Commodity Futures Trading Commission (CFTC). Its flagship offering includes:
- Physically settled Bitcoin futures: Unlike cash-settled contracts, Bakkt will custody actual Bitcoin for institutional traders.
- Partnerships with Microsoft, Starbucks, and Boston Consulting Group for infrastructure development.
Starbucks’ Stance: Conversion Over Direct Acceptance
Starbucks clarified in a 2018 statement:
"Customers cannot pay for Frappuccinos with Bitcoin. We’re exploring how digital assets can be converted into USD for use at our stores."
Implementation Timeline
- Initial rollout limited to U.S. customers.
- Starbucks will assess Bakkt’s asset custody capabilities before full deployment.
FAQs
Q: Can I pay with Bitcoin directly at Starbucks?
A: No. Bitcoin is converted to USD via Bakkt’s platform before reaching Starbucks.
Q: When will this service launch?
A: After Bakkt receives CFTC approval and proves its security protocols—expected late this year.
Q: Will Starbucks hold Bitcoin?
A: No. The company only receives fiat currency post-conversion.
Why This Matters
- Mainstream Adoption: Starbucks’ move signals growing institutional acceptance of crypto.
- Regulatory Clarity: Bakkt’s CFTC approval could set precedents for crypto futures markets.
👉 Explore Bakkt’s upcoming Bitcoin futures
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