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Starbucks Clarifies Its Position on Cryptocurrency

Late last week, news went around that international coffee maker was going to get involved in Bitcoin and cryptos in general. Many saw this development as a welcome one, especially as it provided relief to the crypto community. But the coffee company has come out to clarify the rumors.

Cryptocurrency Foray Doesn’t Mean Bitcoin for Latte

American coffee company, Starbucks, has come out to debunk rumors that it was accepting Bitcoin and other cryptocurrencies as payment. Earlier in the week, the company announced Bakkt, a new global platform that will enable the spending of digital assets. This is a joint venture involving Intercontinental Exchange, BCG, and Microsoft, amongst others. According to Starbucks’ payments VP:

The company would 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.

The announcement excited several new outlets who rolled out different headlines with the notion that Starbucks customers would soon pay for their coffees and lattes with Bitcoin. On Saturday, the company decided to set the records straight. To clarify the notion and correct the impression already created, a spokesperson for Starbucks said:

It is important to clarify that we are not accepting digital assets at Starbucks. Rather the exchange will convert digital assets like Bitcoin into US dollars, which can be used at Starbucks. Customers will not be able to pay for Frappuccinos with bitcoin.

The announcement made by Starbucks indicates a significant interest in the promising crypto industry, and retail payments will be considered. When it comes to the frequent use of its mobile app, it is beating out big names like Apple Pay and Google Pay. According to an article on Fortune:

The founding imperative for Bakkt will be to make Bitcoin a sound and secure offering for key constituents that now mostly shun it—the world’s big financial institutions. The goal is to clear the way for major money managers to offer Bitcoin mutual funds, pension funds, and ETFs, as highly regulated, mainstream investments.

Starbucks Getting Involved in Crypto

On Friday, Intercontinental Exchange (owners of the NYSE), Microsoft, BCG, and Starbucks, announced that the launch of Bakkt. The announcement came as a relief for the crypto community. The new company will push Bitcoin and other cryptos towards becoming the mainstream financial asset. The news was timely, as it came at a time when crypto markets lacked the drive to get out of the crypto bear trend.

Crypto enthusiasts believe that with Bakkt, there is hope that the CBOE sponsored Bitcoin ETF pending at the SEC might just get the go-ahead it seeks. Bakkt getting fully operational by November 2018 will give validity to Bitcoin ETF. Brian Kelly of CNBC, further explains the situation. He said:

This is huge news. I think the market is completely underappreciated. So, let us talk about why this is the biggest news of the year for Bitcoin. It paves the way for a Bitcoin ETF. Last week I stood here and said you know what, I don’t think the Bitcoin ETF will get approved. And guess what? The Winkelvoss ETF got rejected. Why? Because there was not a US regulated exchange and there wasn’t US regulated custody.

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Here Is How Starbucks Will Lead the Way Towards Bitcoin’s (BTC) Global Adoption

The news that the owners of the New York Stock Exchange – the Intercontinental Exchange – has teamed up with Microsoft, BCG, Starbucks and other firms to launch the Bakkt company that will push Bitcoin and other digital assets towards becoming mainstream financial asset, has come at an opportune time in the crypto-verse. The news came during a time period when the crypto-markets lacked the momentum to get out of the current bear trend. Although the news came late on Friday, there is indeed hope in the crypto-marekts.

With Bakkt, there is hope that the CBOE sponsored Bitcoin ETF pending at the SEC might be approved by the end of the year. This is due to the fact that Bakkt will be fully operational by November giving validity to Bitcoin ETF as explained by CNBC’s Brian Kelly below:

This is huge news. I think the market is completely underappreciated. So let us talk about why this is the biggest news of the year for Bitcoin.

It paves the way for a Bitcoin ETF. Last week I stood here and said you know what, I don’t think the Bitcoin ETF will get approved. And guess what? The Winkelvoss ETF got rejected. Why?

Because there was not a US regulated exchange and there wasn’t US regulated custody.

The Bakkt company provides a regulated exchange and a US regulated licensed warehouse where commodities will be stored. During the CNBC commentary, Brian Kelly would go on to explain how Starbucks will be thrust into the limelight of Bitcoin adoption on a global scale since it is part and parcel of the new Bakkt venture.

Starbucks are going to allow you to take your crypto and effectively load up a US Dollar card with it. We do not have a problem with that payment system here in the US.

This is more about a move forward and if you look at Starbuck’s history, they are really at the forefront of digital payments particularly in the retail space. To have them involved is more of a signal that this is becoming more of a mainstream.

If you go globally, they are talking about Bitcoin as a global currency…which I believe it could be…People are going to start using Bitcoin to buy their coffee if their currency does not work well.

In conclusion, and as commented by CNBC’s Brian Kelly, it is only a matter of time before we start paying for our coffee at Starbucks using Bitcoin. This will in turn mean that BTC is soon going to be a mainstream medium of exchange for goods and services on a global level.

Disclaimer: This article is not meant to give financial advice. Any opinion herein should be taken as is. Please carry out your own research before investing in any of the numerous cryptocurrencies available.

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