Editorial 7 March 2019Erik Gibbs
Starbucks may not be embracing crypto after all, but there is an alternative
Every now and then, a report surfaces that Starbucks is ready to begin accepting cryptocurrencies. The last couple of times the rumor has surfaced, it has centered on the company’s relationship with the Bakkt crypto trading platform, but those rumors have been squashed as quickly as they made their appearance. Fortunately, there is a solution, and it is available through the original Bitcoin, Bitcoin SV (BSV).
The Block published an article this week that asserted that Starbucks would “allow coffee-lovers to pay in-store” using digital currencies, thanks to software provided by Bakkt. The news outlet Hard Fork contacted Starbucks for more details, and received a reply that refutes the project. A Starbucks representative explained, “Our role as the flagship retailer for Bakkt is to consult and develop applications for customers to convert their digital assets into U.S. dollars, which can then be used in our stores. We anticipate that a range of cryptocurrencies will gain traction with customers and, through our work with Bakkt, we will be uniquely positioned to constantly consider and offer customers new and unique ways to pay seamlessly, at Starbucks. As we continue to move forward with this work, we anticipate we’ll have more to share in the coming months.”
It appears that Starbucks is still not ready to hold any digital currencies directly, but will, alternatively, exchange crypto for fiat. While this may be a step in the right direction, many crypto enthusiasts believe that it doesn’t go far enough to truly integrate Starbucks into the crypto ecosystem, as there is still a requirement to have the crypto converted to fiat.
If retailers are concerned about holding crypto and the potential volatility of the markets, there is a safe, secure alternative. Tokenization has been discussed for the past several years and Dr. Craig Wright pointed out its importance during a speech at TOKEN2049 last year. BSV allows retailers to tokenize their assets, thus removing the risk associated with currencies.
Tokenizing an asset allows that asset to be divided and sold in parts, which helps overcome some of the obstacles associated with an illiquid commercial market. BSV integrates tokenization into the blockchain, giving retailers a simple and secure method for managing their assets.
Tokenization can provide better liquidity, programmability and proof of ownership and tokenized assets can legally be exchanged, including for other values. It also allows merchants to transact without having to store sensitive data on their servers. In the end, tokenized transactions are faster, more secure and cheaper for the merchant.
This is a win-win for everyone. Retailers have the ability to accept digital currencies while mitigating currency security risks, and the crypto space is able to move forward and show why it is a viable alternative to fiat. As Wright put it last year, “If done right, tokenization could herald a new revolution that would open the floodgates to inclusion and global interaction.”
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as BTC coins; tokens on the Bitcoin Cash ABC chain are referenced as BCH, BCH-ABC or BAB coins.
Bitcoin Satoshi Vision (BSV) is today the only Bitcoin project that follows the original Satoshi Nakamoto whitepaper, and that follows the original Satoshi protocol and design. BSV is the only public blockchain that maintains the original vision for Bitcoin and will massively scale to become the world’s new money and enterprise blockchain.
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