CNBC and Bloomberg caught huge attention from a story on Starbucks accepting Bitcoin in partnership with Microsoft and the parent company of the NYSE. There is a new project in the works called Bakkt that could facilitate retail Bitcoin payments in physical stores, but it won’t be happening as soon as initial reports led on.
Press Release Clarification
The press release states: “Launch of regulated, physical Bitcoin futures contract and warehouse planned for November 2018.” Starbucks will be the “flagship retailer” for payment processing on the new platform, but there is no estimation on when that could be established.
“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.”
If, or when it does happen, Starbucks would still only process fiat currency. Transactions would instantly engage an exchange of BTC from a customer for fiat, where the fiat would move directly to Starbucks. There are plenty of hoops to jump through before integrating this kind of thing, but Bakkt is an ambitious project with strong support from long established, powerful companies.
It runs much deeper than just accepting BTC payments. Bakkt is aiming to be a regulated, global ecosystem for digital assets, meaning consumers and institutions could buy, sell, store and spend digital assets on a seamless global network without worrying about regulatory discrepancies.
The platform will be built on Microsoft’s cloud networking services, and backed by their venture capital arm. It wa founded by the parent company of the NYSE, the Intercontinental Exchange. The Bakkt ecosystem is expected to include federally regulated markets and warehousing, with merchant and consumer applications as well. The first use case will be similar to many of the Bitcoin futures already available, based strictly on trading and conversion of Bitcoin versus fiat currencies.
By: BGN Editorial Staff