Starbucks Accepts Bitcoin Via Apps Since 2021 as Walmart Follows

Major American retailers are cautiously embracing cryptocurrency by allowing it as a source of funds, though not as a direct payment method. Walmart is integrating a feature into its OnePay mobile app that lets shoppers sell Bitcoin or Ethereum holdings and then use the resulting cash balance at checkout. This 'convert-to-pay' model mirrors the system Starbucks has used since 2021 through the SPEDN mobile app.

Crucially, no retailer is currently accepting digital assets directly. The process functions as an in-app liquidation of a crypto investment, immediately followed by a standard cash transaction. This added step provides a bridge for crypto holders to use their assets for everyday purchases but stops short of treating cryptocurrencies as a true medium of exchange at the point of sale.

Crypto Purchases Create Tax Headaches for US Consumers

The convenience of spending crypto comes with significant financial reporting obligations. The U.S. Internal Revenue Service (IRS) taxes digital assets as property, which means every time a consumer sells crypto to buy goods, they are executing a taxable transaction. This requires tracking the cost basis and sale price for every purchase, no matter how small, to report capital gains or losses.

This complexity introduces a major friction point for casual users. As Brian Spinelli, Co-CIO at Halbert Hargrove, noted, “You’re going to have a lot of gain-loss scenarios where you might have a lot of transactions to report.” Furthermore, consumers risk liquidating an appreciating asset for everyday expenses. If a customer sells Bitcoin to make a purchase and later returns the merchandise, they receive cash back, potentially locking in a loss from their original crypto investment.

Broader Adoption Aims to Expand Access and Stabilize Value

Despite the hurdles, wider retail adoption is seen as a net positive for the digital asset ecosystem. Enabling crypto-to-cash spending provides a vital service for unbanked individuals who may hold crypto but lack access to traditional financial institutions. This capability allows them to convert digital holdings into a usable payment form for essential goods and services.

For investors, this trend could signal a maturation of the asset class. Increased utility and a broader user base may help temper the extreme price volatility associated with cryptocurrencies. According to CK Zheng, cofounder and CIO of ZX Squared Capital, Bitcoin currently behaves like a hybrid of a tech stock and a store of value. He suggests that as it becomes more widely used, its volatility will likely decrease, bolstering its investment case as a hedge against fiat currency depreciation.