Starbucks CEO Talks Crypto
Starbucks just dropped some hints about accepting cryptocurrencies. Howard Schultz, Chairman and CEO at Starbucks Corporation, believes that there’ll eventually be a few “legitimate” cryptocurrencies once the crypto-market matures. He also added that these cryptos will have to be “legitimized” by reputable, brick-and-mortar establishments that are willing to accept them. Mr. Schultz might be overlooking the fact that big name companies have already been accepting cryptocurrencies. WordPress, Wikipedia, 1-800-Flowers.Com Inc, Subway, LOT Polish Airlines, and Overstock are just a few of the well-known organizations that accept bitcoin or other cryptocurrencies.
Nevertheless, Mr. Schultz thinks that we’re going to see “a significant level of a digital currency that is going to have a consumer application” and that his company “is in a unique position to take advantage of that”. He goes on to clarify that his company doesn’t have any concrete ideas about how to enter the crypto-market at the moment. Furthermore, he stated that Starbucks isn’t planning to develop its own crypto or make any substantial investments in the crypto sector.
Starbucks Doesn’t Believe in Bitcoin, but Likes Blockchain
The giant coffee shop’s CEO stressed that his company does not believe bitcoin will become a legitimate currency of the future. However, he feels that the blockchain technology that underpins most digital currencies could help launch consumer applications that will gain the trust of many. He also suggests that his company could benefit financially due to advancements in blockchain tech. In addition, he asserts that Starbucks could help legitimize cryptocurrencies once it starts to accept them and “significantly create long-term shareholder value”.
Notably, Starbucks Corporation’s stocks are down recently, primarily due to concerns among investors that the company might gradually be losing its US market. Is it possible that Starbucks has started talking about cryptocurrencies so that their shares can get a boost? It’s quite plausible considering that stocks of many companies surged when they announced that they were entering the cryptosphere. For example, Long Island Iced Tea saw its share price spike by over 400% after revealing that it was looking into blockchain technology. And, as reported earlier by Core Media, Kodak, the 130 year old imaging products company, tried to become relevant again by entering the crypto-market with its own token, KodakCoin.
Starbucks’ Mobile Payment App
The coffee company introduced its mobile payment app a few years ago. It has been quite successful due to the convenience it provides and its loyalty rewards program. Back in 2014, it was reported that the company had been processing a staggering 4 million mobile wallet payments per week. If Starbucks can enter into a partnership with a “crypto payment system” provider who could help them incorporate a “payment with crypto” feature into their app, then this might become popular with its coffee drinkers.