Starbucks announces plans to start accepting cryptocurrencies, except Bitcoin
International coffee emporium, Starbucks has announced that it will become one of the first high-street businesses to accept cryptocurrency for payment as it moves to incorporate blockchain in its payment strategy. But in a devastating blow for Bitcoin, which saw its value plummet last week, the company has ruled out accepting it as payment.
This announcement is a huge boost for the cryptocurrency world, and it signals a move towards their utilisation for every day purchases.
In recent months, interest in cryptocurrencies has increased drastically and this has led to many leading retailers realising the necessity to adapt payment using this method, into their business strategies. The Starbucks boss added that Bitcoin would not be a part of their corporate strategy due to the fact he believes it doesn’t have the longevity needed to be a “currency today or in the future”.
He added; “I believe that we are heading into a new age, in which Blockchain technology is going to provide a significant level of a digital currency that is going to have a consumer application.”
The last year has seen a number of cryptocurrencies rise in popularity, including Ripple, Ethereum, and Litecoin. Since Bitcoin was launched in 2009, it has seen its value skyrocket to over $20,000 in December, and then fall to almost half of that price a number of weeks later. Concerns over its volatility, scalability, and the technology that underpins it, mean that it could soon see itself replaced by quicker, newer, and cheaper versions such as Litecoin.
Back in 2015, Starbucks launched an application that allowed customers or order and pay for their drinks remotely. This app then gave customers rewards and incentives for using the application and became a huge, commercial success. It was this success that led Mr Shultz to the conclusion that his company could be pioneers in accepting cryptocurrencies, adding that it would “significantly create long-term shareholder value”.
Whilst this news is something of a blow to Bitcoin, it is a vote of confidence in the theory, application, and potential of cryptocurrencies, and it will be interesting to see which other brands will follow suit and announce their plan to accept digital currencies as payment.
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