Luxury brands plan to accept cryptocurrency amid bitcoin growth
Kyiv • UNN
Elite fashion brands and retailers are considering accepting cryptocurrency as a means of payment. The French department store Printemps has already announced a partnership with Binance to implement crypto payments.
The sharp rise in the value of bitcoin has attracted the attention of elite fashion brands and retailers, who have begun to consider cryptocurrency as a means of payment. This not only opens up access to new sources of income but also helps to win the loyalty of crypto investors.
Written by UNN with reference to Reuters.
Until now, only a few luxury brands such as LVMH, watch brands Hublot and Tag Heuer, as well as fashion brands Gucci and Balenciaga owned by Kering, have experimented with cryptocurrency payments.
Recently, the upscale French department store Printemps announced a partnership with the largest cryptocurrency exchange Binance and financial technology company Lyzi. This partnership will allow Printemps to accept cryptocurrencies, including bitcoin and ethereum, in its stores in France, becoming the first department store in Europe to make such a move.
Amid the growth of bitcoin, this example has attracted interest from other brands and retailers who are also considering implementing cryptocurrency payments.
“We've had quite a few calls - it's generated interest,” said Binance France president David Prinkey, who said the company is in talks with other luxury labels.
Luxury lighter and pen maker S.T. Dupont tells Reuters it plans to introduce cryptocurrency payments in its two Paris stores before the holidays.
In the service sector, the cruise company Virgin Voyages has started accepting bitcoin as payment for an annual subscription to its $120,000 liner cruises.
Regulators have long warned that cryptocurrencies, such as bitcoin, are high-risk assets with limited real-world applications. High volatility has also created obstacles to the widespread use of cryptocurrencies as a means of payment.
However, the support of the newly elected US President Donald Trump, who plans to introduce more friendly regulation of cryptocurrencies, has stimulated record growth in bitcoin. S&P analysts note that the situation is beginning to change thanks to innovations in blockchain technologies that help to increase the stability of cryptocurrencies.
Luxury brands have long sought to attract wealthy buyers from the tech industry. For example, Hermès, in partnership with Apple, has launched an exclusive series of Apple Watches with leather straps from the French manufacturer.
The recent rise in the value of bitcoin, which exceeded $107,000, has attracted new investment to the luxury sector, which is experiencing one of the biggest downturns in recent years. According to Andrew O'Neill, Digital Asset Analyst at S&P Global Ratings, accepting cryptocurrency payments allows brands to position themselves as innovative players in the market, which helps them attract a younger audience.
However, most retailers convert cryptocurrencies into euros or dollars to reduce volatility risks, and customers often use familiar payment services such as PayPal or Venmo.
Bitcoin investors who have made significant profits are increasingly choosing luxury goods, such as designer bags or watches, to diversify their assets. For example, Balenciaga has released a leather business card holder for the Ledger Stax crypto wallet that costs 350 euros. Ledger hardware, such as the touchscreen Stax, has become popular among premium buyers.
The rise of bitcoin in late 2021 sparked an initial flurry of interest from luxury brands, including Tag Heuer, which was headed by LVMH descendant Frederic Arnault at the time, and Gucci, which accepted cryptocurrency payments for some purchases in the United States the following year.
Recall
On Tuesday, bitcoin continued to grow, temporarily reaching record levels amid optimism about the possible creation of a Strategic Bitcoin Reserve.
