As its co-founder and CEO Matt Luongo explained to CoinDesk, Card For Coin leverages Starbucks' existing gift card infrastructure to process payments using digital currency.
He put it simply:
How it works
Coin For Coffee sports a simple interface. Users choose how much they want to upload (ranging from $5 to $50).
After confirming a user's email address, the system produces a bitcoin address in which to deposit the amount. Users send the amount they want to spend, and Coin For Coffee produces a barcode.
The barcode is then scanned at the Starbucks register as if it's a gift card. Once the transaction is complete, any remaining bitcoins are returned to the owner after roughly 30 minutes.
Origins of the project
That project has since been delayed pending regulatory approval. The team has no official relationship with Starbucks.
When asked about the differences between the two projects, Luongo framed them as two sides of the same coin.
Looking ahead, Luongo sees a future in the project and hopes that Coin For Coffee will be able to tap coffee retailers beyond Starbucks.
The team is also developing a dedicated mobile app. User interest, according to Luongo, has been positive. He said that more people have expressed enthusiasm for Coin For Coffee compared to Card For Coin.
Ways for consumers to spend bitcoins grow
Loadable spending tools, either browser-based or card-based, are becoming increasingly prevalent world wide.
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