Bitcoin still goes under the radar with most people, but that may change if Starbucks starts to accept the cryptocurrency. Starbucks is preparing to accept Bitcoin using Bakkt, a digital asset platform that expects to launch later this year. More and more companies are accepting Bitcoin as a way to pay for goods and services, and Starbucks would take Bitcoin acceptance to another level. Many companies around the world are accepting Bitcoin as an alternative payment method, but most businesses still have not taken to accepting cryptocurrencies. If Starbucks starts accepting Bitcoin it would signal to other companies that it is time to make Bitcoin a regular payment method.
Bakkt Working as the Middleman
Bakkt is a cryptocurrency platform that is owned by International Exchange. Starbucks has made an investment in Bakkt and it is expected that Starbucks will become the major client for Bakkt. What this means for Starbucks customers is that they can use Bakkt to convert Bitcoin that could be used in the Starbucks app. It is worth noting that Starbucks has a great prepaid program where customers have already paid for their coffee using the app. This is where Bitcoin could be used if Bakkt is the platform for Starbucks. It would simply be as easy as choosing to pay for your Starbucks coffee with Bitcoin instead of dollars.
Customers who currently use the Starbucks app load funds into a prepaid account when they pay online or in the store. Starbucks would simply be allowing customers to load their account with another form of currency if they use Bakkt as expected. Customers would not be able to pay directly with Bitcoin at the store, but they would be able to load their card using Bitcoin to pay for coffee at Starbucks.
Advantages for Starbucks
If you are wondering why Starbucks would want to accept Bitcoin, there are two main advantages. First, they would be thought of as a forward-thinking company that is getting ahead of the curve. Cryptocurrencies are the wave of the future and Starbucks would be thought of as an exciting company that is embracing the future. It is similar in many respects to what BookMaker.eu is doing with sports betting, as they accept Bitcoin. Second, Bitcoin is a cryptocurrency that has a very favorable exchange rate compared to credit and debit rates, so Starbucks could save money.
When Bakkt rolls out their platform later this year, and Starbucks starts accepting Bitcoin, it should be noted that only customers in the United States will be able to pay using Bitcoin at Starbucks. That should change over time, but the rollout for Bakkt and Starbucks will start with the U.S. stores.
Both Starbucks and Bakkt were awaiting a decision from the Commodity Futures Trading Commission. It has been reported that Starbucks received a significant equity in Bakkt in exchange for a commitment to allow Bitcoin to be used at Starbucks in 2019.
The possible hiccup in this arrangement between Starbucks and Bakkt is that if Starbucks has equity in Bakkt, there could be some tax reporting that is necessary because Starbucks customers paying with Bitcoin would be required to count the capital gains on every cup of coffee bought with Bitcoin. Whether that would actually be a problem is still unclear, as there could be an exemption for small gains and whether it would even matter to customers is another issue entirely. It is hard to see customers being worried about having to report something as trivial as a capital gain on a coffee purchase.
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