Check out what's being clicked on FoxBusiness.com
A test case for mainstreaming cryptocurrencies is coming to a local coffee chain in the nation's capital, FOX Business has learned.
Compass Coffee, a veteran-owned coffee brand with more than a dozen stores in the Washington, D.C., area, has partnered with Coinbase, the largest cryptocurrency exchange in the U.S., to pay for your morning beer in USDC, a so-called “stablecoin.” We offer our customers the option to pay with. “A type of cryptocurrency that functions like a digital dollar.
On Wednesday, customers who pay with USDC at Compass' Half Street store will receive 90% off their orders, plus non-fungible tokens, a type of digital asset, that can be used to redeem free canned coffee from Coinbase and the brand. can get. Compass logo.
The move is an example of how cryptocurrencies are slowly making their way onto Main Street, with small and medium-sized businesses becoming more open to the idea of accepting payments in digital assets.
Prosecutors seek 40 to 50 years in prison for Sam Bankman Freed
A test case for mainstreaming cryptocurrencies has arrived at a local coffee chain in the capital. (Fox Business/Eleanor Terret)
While major companies like Starbucks, Subway, and AMC Theaters accept payments in cryptocurrencies, it's becoming more difficult to find independent establishments that offer this option.
Coinbase hopes this partnership will go a step further and break down the perception among lawmakers and regulators in Washington, D.C., that cryptocurrencies are just speculative investment assets. The exchange wants to focus on cryptocurrencies as a way to improve America's “outdated” financial system, which is “shortchanging” Americans primarily through hidden transaction fees.
One of the biggest selling points of cryptocurrencies and the blockchain technology that runs on them is that they eliminate so-called “middlemen” – intermediary organizations such as credit card companies – that charge fees every time money moves between platforms. It's possible. Cryptocurrency can reduce the cost and time of transactions to a fraction of the time of credit card transactions.
Bitcoin surpasses $73,000, setting new record
Compass Coffee partners with Coinbase, the largest U.S. cryptocurrency exchange, to offer customers the option to pay for their morning beer in USDC, a so-called “stablecoin,” a type of cryptocurrency that functions like a digital dollar. are doing. (Fox Business/Eleanor Terret)
In the case of Compass Coffee, the company said it currently loses about 3.75% of its sales to credit card companies through extra fees paid on transactions made with credit cards, so-called “junk fees.”
As a small business that has survived the COVID-19 pandemic, Compass says every penny counts and the money it pays to credit card companies can be used to pay for staff, rent and suppliers.
“Accepting cryptocurrency payments could be transformative for our business,” Compass Coffee founder Michael Haft told FOX Business. “By accepting USDC and limiting junk fees, we are improving the retail experience by ensuring that margins that would normally be paid to credit card companies come back to us and in return boost local economies.” I want to contribute to the transformation of
Compass Coffee said it currently loses about 3.75% of its sales to credit card companies through extra fees paid for transactions made with credit cards, so-called “junk fees.” (Fox Business/Eleanor Terret)
CLICK HERE TO GET FOX BUSINESS ON THE GO
The USDC payment option is only available at the Half Street store for now, but Compass plans to roll out the feature to 11 other stores in the future.
Coinbase will also hold its first Update the System Summit on Wednesday. The event aims to highlight how cryptocurrencies can be used to solve real-world problems facing everyday life in the United States. The event will feature a panel discussion with industry figures such as Marc Andreessen of Andreessen Horowitz, a venture capital firm specializing in cryptocurrencies, as well as Representative Patrick McHenry and Senator Cynthia Lummis. ing.
“The Update the System Summit will feature the myriad real-world applications being developed for cryptocurrencies and blockchain technology,” Coinbase Chief Policy Officer Fayad Shirzad told FOX Business. . “Our partnership with Compass is a great experiment to show how stablecoins can simplify finances and save small businesses thousands of dollars in unnecessary credit card fees.”
