Starbucks teamed up with Microsoft to allow users to purchase their coffees, lattes, cold brews, Frappuccino via Bitcoin payment.

Starbucks together with Intercontinental Exchange (ICE), Microsoft and BCG, is planning to launch a new platform named Bakkt by November that will allow consumers to trade, purchase, store and spend digital currencies on the global network. The platform is said to convert Bitcoin and other cryptocurrencies into U.S. dollars which user can use to purchase any of the items at Starbucks.

The CEO and founder of Intercontinental Exchange (ICE), Jeffrey C. Sprecher quoted with regards to the launch of Bakkt:

In bringing regulated, connected infrastructure together with institutional and consumer applications for digital assets, we aim to build confidence in the asset class on a global scale, consistent with our track record of bringing transparency and trust to previously unregulated markets.

About the Companies

Intercontinental Exchange (ICE) helps business to build, operate and advance the overall financial commodity markets. ICE is an American company that operates 23 regulated exchanges with marketplaces.

Microsoft Corporation is an American-based multinational tech firm headquartered in Redmond, Washington.

Starbucks is a Seattle-based coffee company and coffeehouse chain, established in 1971. As of 2018, this coffee company operates in almost 28,218 locations worldwide.

The Boston Consulting Group (BCG) is a multinational management consulting firm with 90 offices in around 50 countries.

The firms together with the Boston Consulting Group (BCG) are working together on Bakkt, saying it will come to life within the next 3 months.

Starbucks and Microsoft in a Partnership

In accordance with a press release, the new cryptocurrency is all ready for the launch in November 2018 for physically regulated Bitcoin futures contract and warehouse.

The founder and CEO of BKCM, Brian Kelly says:

“Its big news for bitcoin because people say where can you spend it? Now at every single Starbucks.” “Starbucks is seeing some kind of demand for acceptance of crypto and bitcoin, and to tie up with a huge regulated institution like the ICE is really positive for the space.”

Cryptocurrency cynics have questioned its use for payments due to its volatility. For example, Bitcoin has dropped roughly by 50 percent this year. Also, its value fluctuates by hundreds of dollars in a single day.

However, with Starbucks taking digital assets seriously, it could support Bitcoin breakthrough in the mainstream market.

The Vice President, Partnerships and Payments for Starbucks, Maria Smith said:

“As the flagship retailer, 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. As a leader in Mobile Pay to our more than 15 million Starbucks Rewards members, Starbucks is committed to innovation for expanding payment options for our customers.”

Starbucks is not the first retailer to adopt the digital currency. In 2014, Overstock.com was the first merchant to support Bitcoin. There are many merchants that already accept cryptocurrency as a form of payment including Expedia, Shopify, CheapAir, and Ultimez, etc.

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Article Reference: Starbucks Partners with Microsoft to Allow Bitcoin Payments