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Adoption

Starbucks backing out of bitcoin adoption?

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The adoption of cryptocurrency payments could prove devastating for Starbucks and consumers due to tax-related issues as well as market volatility.

Cryptocurrency enthusiasts around the world were on the cloud nine when they heard that Starbucks which is the favorite coffee shop for most coffee lovers worldwide has backed the upcoming Bakkt exchange and might start accepting bitcoin payments at their outlets worldwide. However, the adoption of cryptocurrency payments could prove devastating for consumers due to tax-related issues.

 

Starbucks and Cryptocurrency:

Back in August 2018, Starbucks was in the news for being one of the backers of the upcoming Bakkt cryptocurrency exchange which is especially focused on bringing institutional investors into the cryptocurrency space. Recently, a few days back, it was revealed publically that Starbucks had acquired a good amount of equity in the upcoming Bakkt project and thus the coffee chain might just start accepting cryptocurrency payment in collaboration with the Bakkt Exchange. Such adoption could really mean a lot for the overall crypto community as Starbucks is one of the largest coffee chain and has over 28,218 stores worldwide as of 2018. This could result in other big food chains such as Mcdonalds or KFC also following Starbucks on the same. However, after a better examination, there are a number of factors which could make it difficult and very complex for Starbucks as well as the internal revenue services.

 

How does paying by crypto make a difference?

Make the payment for your coffee through bitcoin seems to be a simple concept as it just sounds like paying with a credit card or a digital wallet. However, taxes are the main concern here that make the most of the difference. According to the rules of the IRS or Internal Revenue Services, all the cryptocurrency payments (small or large) shall be directly reported to the IRS in order for them to calculate the profit or loss on the transaction and further calculate the tax on it. The laws related to cryptocurrencies are quite complex thus making it difficult for large companies to adopt cryptocurrency payments.

As Starbucks is a large company and deals with millions of clients every day, the number of transactions is huge. Even if a small portion of the total transactions is made in cryptocurrencies each day, it would still result in thousands of transactions to be reported to the IRS every day. This process would prove to be a headache for the company as well as for the users. Apart from this, the continuous change in the price of cryptocurrencies due to the volatility in the market is another reason why Starbucks might just back out of crypto adoption for the time being.

Adoption

The Amazon of Switzerland: Digitec Galaxus now accepts Bitcoin.

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The biggest online retailer of Switzerland, Digitec Galaxus has now started to accept bitcoin along with other cryptos as a method of payment.

The biggest online retailer of Switzerland, Digitec Galaxus which is also known as the ‘Amazon of Switzerland’ has now started to accept bitcoin along with other cryptos as a method of payment.

 

Digitec Galaxus accepting cryptocurrency payments:

According to Digitec Galaxus, they were willing to integrate cryptocurrency payments on their platform for a long time. The users will now be able to make their payments using Bitcoin, Bitcoin Cash, Bitcoin SV, Ethereum, Ripple, Binance Coin, Litecoin, Tron, OmiseGo and NEO.

 

According to the Co-Founder Digitec Galaxus, Oliver Herren, Cryptocurrencies such as bitcoin are captivating and could very soon be an important method of payment for all ecommerce stores and they are happy to support it. He also said that people will pay using cryptocurrencies because the ones who own them are willing to use them somewhere, some are not being able to convert them into fiat currency because of banking regulations and others would just like to try latest things.

 

Digitec Galaxus also admitted that by integrating cryptocurrency payments, the company is going to showcase itself as a progressive brand.

 

Partnership with Coinify:

Digitec Galaxus has partnered with a third-party cryptocurrency payment processing company, Coinify. All the payments accepted through cryptocurrencies shall be instantly converted into fiat currency i.e. Swiss Franc. This would ensure that the cryptocurrency market volatility does not create an issue for the company.

Cryptocurrency payment method will be available only for Switzerland based users for now, although, the company plans to integrate the same soon for the users in Germany as well.

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Adoption

VISA getting into Cryptocurreny Space

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Visa, a multinational financial services corporation has been discussing entering the cryptocurrency space for a long time now.

Visa, a multinational financial services corporation has been discussing entering the cryptocurrency space for a long time now. It seems that time has finally come. Visa has recently posted a job opening on Smart Recruiters which is subjected as ‘Technical Project Manager, Visa Fintech’.

 

The Job Description reads as follows:

“Are you passionate about the intersection of payments and cryptocurrency? Are you deeply familiar with permissionless blockchain technology and have a close network of experts in the fast-moving cryptocurrency and fintech ecosystem? Are you excited about the challenge of developing new products for Visa to deliver value to fintechs looking to support cryptocurrencies?

As a product manager on the Visa Crypto team, this person will have responsibility for executing Visa’s product strategy within the cryptocurrency ecosystem. This highly motivated individual will be responsible for managing a product roadmap and collaborating with key stakeholders across the strategy, risk, research, and engineering organizations. This individual will work in close collaboration with the Visa Research team to develop new products to deliver value to fintechs and Visa. This person should have great problem-solving skills and creativity to find new opportunities and anticipate how cryptocurrencies could impact payments.

This person will be based out of our Palo Alto office and report to the Head of Crypto within Visa’s Fintech Product group”.

 

VISA CEO on Cryptocurrency:

In January last year, Alfred F.Kelly Jr, the CEO of Visa had clearly mentioned that their company will not process any cryptocurrency transactions and will only deal with fiat based transactions.

As more and more large financial institutions such as JP Morgan and IBM are entering into the cryptocurrency and blockchain space, others are willing to follow before it is too late. Not only financial institutions but large technological giants such as Facebook are also about to enter the cryptocurrency space.

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#Blockchain

Adoption: Courts in France adopt blockchain technology

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The NCC or National Council of Clerks of France have finally tested a blockchain technology-based solution for the courts of the country.

The NCC or National Council of Clerks of France recently made an announcement that they have finally tested a blockchain technology-based solution for the courts and are now prepared to launch it throughout France. The National Council of Clerks is a representation of the clerks of the corporate and commercial registry in around a hundred thirty-hour workplaces in France. The workplaces depend upon one another for sharing important data.

 

The goal of NCC France

The NCC is determined to streamline and position the latest information technology that capitulates something that is known as ‘the single version of the truth’. The data tracks an organization’s growth, dissolution, change of location etc. The sharing of data amongst each other was earlier a big challenge for the NCC.

 

The project based on blockchain technology had an aim of rapid cycle times and precision of information. In the pilot phase of the project, the National Council of Clerks in France was able to lessen the timing of registry operation involving a lot of days to just one day.

 

According to the president of France National Council of Clerks, Sophie Jonval, the project based on blockchain technology is an outcome of the partnership with IBM. IBM who is already an expert in blockchain technology and cryptography has been serving as a technological partner.

 

According to the NCC, the project shall be rolled out in the 1st half of 2019 and the project shall ensure a transparent and improved dynamics of the interactions between the clerks.

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