On Tuesday, during a Fox Business segment, the CEO of Starbucks, Howard Schultz, revealed that the company was considering adopting blockchain into its operations. He said that the company might develop a proprietary digital coin that will work in tandem with its payment app. When he was asked whether the payment app would utilize blockchain instead of a centralized accounting system, he said that this was probably the direction in which the company would move.
Mr. Schultz said,
I think blockchain technology is probably the rails in which an integrated app at Starbucks will be sitting on top of.
These comments were made almost a month after the former Chief Executive at the company spoke broadly during an earnings call. At the time, he said that the company had plans to use blockchain, especially for payments. However, he was quick to dismiss the idea that the company would somehow adapt payments using Bitcoin.
During this time, Schultz also suggested that the technology might have a role to play in how Starbucks works. He said the technology would be utilized to “expand digital customer relationships”. However, it has still to be seen how the coffee chain will utilize blockchain in its daily operations.
Schultz Believes in Digital Currencies
During the earnings call, Shultz said that he foresaw a future in which the blockchain would provide a digital currency, which would have practical consumer applications. However, he said that he did not think that coin would be Bitcoin. According to him, Bitcoin did not hold the potential of being a currency today or in future.
He also added that he foresaw the potential of the blockchain, not now but in a few years to come. This would be at a time when there is trust and legitimacy with regards to digital currencies.
He was quick to reiterate that Starbucks had no plans to introduce their own coin. Instead, this was just him thinking about the future of the company. A while back, Shultz said that he could foresee a future in which the coffee chain operated in a cashless manner. Shultz joined the company in 1982 as the director of operations and marketing, and has been there ever since.
The CEO of Starbucks, reacting to the comments by Schultz, said that the company was not seriously considering a major project in blockchain tech. However, he did recently comment that the company was trying out a cashless store in Seattle. He said this was in line with the company trying to keep up with the evolving nature of payment platforms.
What Other Business Leaders Think of Digital Currencies
A while back, the CEO of JP Morgan Chase, Jamie Dimon, said that digital currencies would never compete with the dollar. However, he does believe that the blockchain has a future in ensuring that transactions are more efficient.
Image Credit: Deposit Photos
What do you think about the alleged decision by Starbucks to embrace blockchain? Leave us your thoughts in the comments section below.