Yesterday, Starbucks Chairman Howard Schultz said that he believes digital currency will catch on with consumers, but it won't be bitcoin.
“I’m bringing this up because as we think about the future of our company and the future of consumer behavior, I personally believe that there is going to be one or a few legitimate, trusted digital currencies off of the blockchain technology,” he said. Here's the article it came from: http://time.com/money/5121644/starbucks-chairman-bitcoin/
There you go, he sees the power of blockchain.
While I don't think retail brands should launch their own cryptocurrencies, and that using them for microtransactions like coffee (though some might argue the cost of Starbucks coffee is not a microtransaction) has many challenges ahead due to the wide price fluctuations, here are a few semi-sensical reasons for them to launch "Star Bucks".
Their brand has a great name for a cryptocurrency. Think about having Star Bucks in your wallet. Much better than Dunkin Donuts in your wallet?
They already have consumers addicted to their brand, and coffee. I'm not one of them, because I hate coffee, and any hot beverage for that matter. But I love walking down a city street in the morning and watching sleepwalking zombies walk into the Starbucks store and wait in line for their fix. Something like this that so many people buy EVERY DAY? And it's legal?
They have the geographic reach. Capital One has tried to put cafes in its bank branches. I haven't actually seen anyone sitting in one, but some small fortune of research spending must have gone into the idea that you can combine cash and coffee. Well, why not have Starbucks use its global retail footprint and bring cybercash transacting into the cafe? What's in your wallet? BAM!!
It's all about the data, stupid. What makes Facebook, Google, and Amazon so powerful? In addition to the cloud computing power, it's the data it has about our online behavior, whether anonymous or not. If Starbucks had a cryptocurrency, then it is plausible that other retail staples stores (not Staples, though) like Walgreens or 7-Eleven would take it. Who doesn't want to pick up their Viagra prescription right after grabbing their dopamine? Now look at the massive amount of data that Starbucks would amass on consumer in-store buying behavior. And how it could monetize that data.
Brick-and-mortar could bring trust to crypto. Yeah, I know cryptocurrencies and blockchain dapps are supposed to bring trust and transparency to business. But everyone I talk to outside Steemit still can't wrap their head around creating value out of thin air. So I know there are massive numbers of people who think it is a massive bubble, or even a scam. Who better to bring legitimacy to a cryptocurrency than one of the best known brick-and-mortar brands. Even my mom doesn't worry about Starbucks going out of business, well I mean she worries about what life would be like without Starbucks but she thinks they will be around for as long as she'll be drinking coffee. Keep rockin', mom!!
There's some beverage for thought. I don't really think Starbucks should launch Star Bucks, but it is fun to think about scenarios like this.
What do you think? Post your comments with serious and whimsical reasons why or why not.
About Me: I am a technology analyst, having researched emerging technologies like blockchain, machine learning, and gTLDs at Forrester. This post is not that type of analysis, just my musing.
