The American fast food chain Burger King is suffering from the comparatively poor image of recent years. This image is now to make way for a new restructuring program – the brand is planning an image campaign. Similar to its competitor McDonalds, the business is to become more digital and modern. The fast food chain is also planning to offer better quality food. In Venezuela, the company is even breaking completely new ground and is starting to accept crypto-currencies as a means of payment. For the time being, the focus is on Bitcoin, but customers can also use other Altcoins for transactions.
Burger King branches in Venezuela accept crypto currencies
In Veneuela, customers of the Burger King fast food chain will be able to use Bitcoin for transaction processing in the future. According to a tweet dated December 30, 2019, a Burger King branch in the Sambil region of Venezuela now accepts Bitcoin as its official means of payment. The branch’s service also supports well-known Altcoins such as Ethereum (ETH), Binance Coin (BNB), Dash (DASH), Litecoin (LTC) and the Stablecoin Tether (USDT).
As the blog post of a Dash manager illustrates, the US company uses the Cryptobuyer platform to process the transactions. Cryptobuyer is considered the leading platform for trading digital currencies in South America. While the first test of the platform will initially take place in a branch, the number of participating restaurants is expected to rise to 40 in the course of the year. Accordingly, the service would be available in every Venezuelan branch of the fast food chain. The acceptance of the new means of payment can be attributed to the high demand by customers and retailers.
Cryptobuyer – the success indicator for crypto payments
The gateway of Cryptobuyer plays a central role in the acceptance of crypto currencies. In the past, the company attracted attention by operating Bitcoin ATMs. The company’s business model provides for the immediate exchange of crypto into fiat currencies. For companies in particular, the exchange at the current time is crucial, as digital currencies are often subject to high fluctuations. For example, the exchange rate of a tradable currency can change completely within a few seconds and reduce the margin achieved.
In an official Tweet Cryptobuyer announces
“We are pleased to announce that we have a commercial cooperation with @BurgerKingVE”
The cooperation between Cryptobuyer and Burger King is also a success from the point of view of Venezuelan residents. Above all, the economic turbulence in the South American country is contributing to the fact that the inhabitants suffer from high inflation. Investing in crypto-currencies helps the inhabitants to avoid this inflation.
Burger King takes a stand against Venezuelan government
In addition, the government shows little interest in alternative forms of currency and sees the state crypto-currency Petro as a way out of the crisis. Accordingly, the affected citizens can only use the state digital currency to carry out some services, such as issuing new passports.
Due to the rather reserved attitude of the government, Burger King has now also stopped publicly acknowledging the crypto initiative. However, in recent years, the proposal that Venezuelans should use digital currencies such as Dash or Bitcoin has been regularly and consistently put forward. In the short term, Dash was considered the most promising investment. However, this role is now under threat due to a lack of adaptation by the trade. Bitcoin has not yet made the breakthrough either. However, trading volumes regularly reach new highs. For Dash managers, however, it is clear that crypto-currencies in Venezuela are about to break through.
“The growth of cryptobuyer in South America, particularly Venezuela, is another example of how this region is leading the way in the introduction of crypto currencies as a real means of payment. Venezuela offers a mix of different situations that make the country the perfect base for providing real crypto currency solutions such as hyperinflation, liquidity shortages, deteriorating banking and communications infrastructure. These factors, combined with the government’s initiative to use crypto currencies as a payment method, will drive the deployment and acceptance of these key technologies. We are truly proud to be leading this push.” – Ernesto Contreras, manager at Dash
Conclusion: Burger King pushes crypto-adaptation in Venezuela
As the blog post on Dash makes clear, the US fast food chain is cooperating with the crypto platform Cryptobuyer. The cooperation enables the company’s customers to process payments by using a digital currency. In return, Burger King can exchange the digital currency directly into another fiat currency, thus avoiding the high volatility of digital currencies.
In the past, the government desperately tried to establish Petro as a digital currency. However, this currency did not cause demand for BTC to fall. Rather, the government must acknowledge that change is not taking place for the time being. Instead, the focus must be on other currencies to solve the country’s existing problems.
From my personal perspective, I think Burger King’s approach is excellent. For now, the company is testing the use of digital currencies in a single branch. The other Venezuelan branches are to follow at a later date. This approach allows the company to avoid currency risk and thus achieve higher returns. Whether and when the BTC payments will also appear in Germany or other countries is not yet certain.