Chairman Howard Schultz said he believes digital currency will catch on with consumers, though not necessarily Bitcoin. Schultz said that Starbucks, an early adopter of smartphone payments, is positioned to who is accepting bitcoin advantage in coming years as cryptocurrency — and its underlying technology known as blockchain — become more prevalent among consumers.
He’s just not sure that Bitcoin, which was released in 2009 as the first decentralized digital currency, will still be around. Schultz, who helped build Starbucks into the world’s biggest coffee chain, on the company’s earnings call Thursday. Money may receive compensation for some links to products and services on this website. Offers may be subject to change without notice. Quotes delayed at least 15 minutes. Market data provided by Interactive Data.
ETF and Mutual Fund data provided by Morningstar, Inc. P Index data is the property of Chicago Mercantile Exchange Inc. Powered and implemented by Interactive Data Managed Solutions. Menu IconA vertical stack of three evenly spaced horizontal lines. This story was delivered to BI Intelligence “Payments Briefing” subscribers. Out of the leading 500 internet sellers, just three accept bitcoin, down from five last year. The peak is limiting the benefit for both customers and merchants in accepting bitcoin.
Customers: As bitcoin’s price has skyrocketed, the report found that customers holding the currency seem to be more interested in holding it to make money rather than spending it on goods that could be purchased in other fiat currencies. And when they do try to spend it, it often comes with high fees, which eliminates the utility for small purchases, or it takes a long time to complete the transaction, which could be a turn-off. Merchants: Lack of demand on the consumer end isn’t prompting merchants to invest in the infrastructure required to accept bitcoin, something that’s magnified by insufficient support or effort in increasing the acceptance network from those behind the scenes. And even when merchants do see success with bitcoin acceptance, it’s still a very low share of overall volume — bitcoin sales are tripling, but comprised just 0. Bitcoin will continue to go mainstream, but as an asset rather than a transaction method. People will continue to be more interested in trading or investing in bitcoin rather than using it as a fiat currency.
That said, blockchain, the distributed ledger technology underpinning the cryptocurrency, is taking hold in a number of finance and commerce-related use cases. Outlines banks’ experiments with blockchain technology. Details blockchain projects at three major banks — UBS, Credit Suisse, and Banco Santander — based on in-depth interviews. Discusses the likely trends that will emerge in the technology over the next several years.