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New Starbucks Partnership With Microsoft Allows Customers To Pay For Frappuccinos With Bitcoin (cnbc.com)
Earlier this week, Nestle said it was jumping on the blockchain bandwagon, today, Starbucks said it is ready to top that. From a report: The Seattle-based coffee giant is working with Microsoft and a leading global exchange on a new digital platform that will allow consumers to use bitcoin and other cryptocurrencies at Starbucks. Starbucks along with Intercontinental Exchange, Microsoft and BCG, among others, is working to launch a new company called Bakkt that will enable consumers and institutions to buy, sell, store and spend cryptocurrencies on the global network by November. The platform with convert bitcoin and other cryptocoins into U.S. dollars that can be used to buy a Cold Foam Cascara Cold Brew, Matcha Lemonade or anything else at Starbucks. Starbucks has consistently been at the forefront of embracing new technologies. For instance, it added support for mobile payments in 2011. In May, it was estimated that Starbucks' mobile payment solution is more popular than those of Apple and Google.
In a statement, Maria Smith, vice president of partnerships and payments for Starbucks, "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."
According to Starbucks spokespeople, Motherboard reports, Starbucks doesn't want bitcoins, but it's willing to help people spend them -- the venture is an exchange that will allow people to convert their cryptocurrency into US dollars, which they can then spend at Starbucks locations.
In a statement, Maria Smith, vice president of partnerships and payments for Starbucks, "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."
According to Starbucks spokespeople, Motherboard reports, Starbucks doesn't want bitcoins, but it's willing to help people spend them -- the venture is an exchange that will allow people to convert their cryptocurrency into US dollars, which they can then spend at Starbucks locations.
I was thinking the opposite could be true, too: you pay with bitcoin, and before COB for the day it manages to tank and what was $5.00 worth of bitcoin is now $0.05 worth.
That's exactly why Starbucks isn't actually collecting any BTC. They're using a payment processor which is collecting BTC, and which pays them in USD on your behalf. Starbucks never actually sees a bitcoin.
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
That's theoretically possible, and maybe a possible situation, but not that realistic a scenario. Crypto exchange rates have been volatile, yes, but NOT nearly as volatile as you are implying. We don't see the value decreasing to 1/100th what it was or increasing 100x all in one day. The largest single-day change for BTC ever was approximately 25% which was on major news events.
Serious question: Do you know why the Lightning Network was developed and how it works?
If they're going to use LN, this is a perfect application to demonstrate mass scaling.
..don't panic