Bitcoin has experienced raging popularity in recent years and many bitcoin enthusiasts are thrilled to learn that they could soon be paying for their Starbucks drinks with the cryptocurrency.
Starbucks announced that it has partnered up with Microsoft to allow its customers to pay for drinks using bitcoin.
The partnership is also with ICE and involves a new cryptocurrency platform called Bakkt that is aimed for consumer use.
The CEO and founder of BKCM, a global investment management firm specializing in Global Macro and Currency investing, Brian Kelly, remarked, “It’s very big news for bitcoin because people say where can you spend it? Now at every single Starbucks.”
Seattle-based Starbucks is working with Microsoft and a leading global exchange on the new digital platform that will allow cryptocurrencies as payment.
The coffee giant, as well as Intercontinental Exchange, Microsoft and BCG, and others, are working to launch Bakkt by November.
The new company will let consumers and institutions to buy, sell, store and spend cryptocurrencies on the global network.
The Bakkt platform will convert bitcoin and other cryptocoins into U.S. dollars that can be used to buy Starbucks drinks.
“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,” stated Maria Smith, vice president of partnerships and payments for Starbucks.
She added, “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.”
BKCM’s Brian Kelly also said, “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.”
“They’ll now have a U.S.-regulated exchange, and they have a licensed warehouse, which is how commodities are stored, and that’s going to make it a lot easier for an ETF to come through,” Kelly, told CNBC’s “Fast Money.”
Kelly, who also manages blockchain-focused BKCM Digital Asset Fund, continued, “They’re talking about getting this into your 401(K). They’re talking about in your … Fidelity or TD Ameritrade account, you’re going to be able to buy a bitcoin ETF, a bitcoin mutual fund. It expands the universe.”
On bitcoin not seeing movement on the news, he explained “My conclusion is the crypto market is completely missing this. Perhaps the market in general is missing this. This is very, very big news.”
While Starbucks is not the first major company to accept bitcoin, it’s a big move for the coffee giant which has millions of customers across the world.