Billionaire investor says Starbucks testing crypto integration is a "big deal"

Michael Novogratz, the billionaire CEO of Galaxy Digital, said the testing of crypto by Starbucks for its consumer app is a big deal for the asset class.

"Follow this space. This is a big deal. Crypto acceptance is coming. Bakkt to launch consumer app in first half of 2020; will test product with Starbucks."

Why potential crypto integration by Starbucks is crucial.

Throughout the past three years, the crypto sector has seen significant improvements in many areas such as trading infrastructure and institutional services.

Up until mid-2018, large retailers, especially in major crypto exchange markets including Japan and South Korea, were planning to integrate cryptocurrencies like bitcoin.

Most of the high profile deals have not been finalized and only a small number of large-scale retailers such as Bic Camera are directly accepting crypto payments.

As Starbucks continues to move towards integrating a system to accept payments in crypto incentivized by its role in Bakkt - a Bitcoin futures market operated by NYSE parent company ICE - as a founding partner, it could single-handedly increase the adoption of crypto by consumers in the U.S. market.

The integration of a system that accepts crypto payments by Starbucks could be a catalyst that encourages other retailers to integrate crypto after years of non-action, possibly due to regulatory uncertainty, volatility, and the lack of viable services available in the sector.

While the motivation behind the Chinese government to abruptly begin to focus on blockchain development remains unclear, it has brought significant attention to the crypto market as portrayed by various pieces of data such as the rising search volume for crypto-related keywords.

The introduction of a crypto payment option or a cryptocurrency solution by Starbucks on its consumer app as the momentum of the sector as a whole strengthens could establish a positive business sentiment throughout 2020.Posted In: Adoption, Bitcoin, People of Blockchain.