With the rise of Bitcoin, the luxury goods industry is reportedly showing more interest in allowing payments in cryptocurrencies.
As Reuters reported on Wednesday (December 18), only a handful of brands, including Gucci and LVMH watch brands, Hublot and Tag Heuer, had until recently allowed payments in cryptocurrencies. It was. But now, with the price of Bitcoin at an all-time high, other companies are also entering the cryptocurrency space.
For example, French luxury department store Printemps recently partnered with Binance, making it the first European department store to accept cryptocurrency payments, the report said. Other brands and retailers have indicated they intend to follow suit.
Binance France President David Plinkay said the exchange was in talks with other luxury brands.
Meanwhile, luxury lighter and pen maker ST DuPont told Reuters it plans to accept cryptocurrency payments at two of its Paris stores before the holidays.
It’s not just retailers. Earlier this month, cruise line Virgin Voyages began accepting Bitcoin as a payment option for those looking to spend $120,000 on an annual pass.
PYMNTS investigated this topic last month and found that brands such as Rolex and Ferrari are “embracing features that allow customers to purchase luxury watches and luxury cars with Bitcoin or Ethereum, two of the most popular cryptocurrencies.” I wrote it.
Platforms like BitPay are increasingly working with merchants like Ralph Lauren, AMC Theaters, and New York’s Metropolitan Museum of Art, as well as charities like the American Cancer Society and American Red Cross, to streamline crypto transactions. Masu.
This comes at a time when Bitcoin is hitting new all-time highs, surpassing $108,000 on Tuesday (December 17), and the luxury goods sector is suffering from weak sales.
At the same time, cryptocurrency payments remain new territory for many consumers.
“Companies need to clearly communicate related procedures, including which cryptocurrencies are accepted and any applicable fees,” PYMNTS wrote last month. “Providing educational resources and support channels will ease customer adoption.”
As the adoption of cryptocurrencies increases, staying on top of regulatory changes can also be important for consumers and merchants.
“The main barrier to widespread adoption of stablecoins outside of the cryptocurrency ecosystem is the lack of a regulatory framework,” Tony McLaughlin, head of emerging payments at Citi Services, told PYMNTS last month.
Additionally, the PYMNTS Intelligence report, “Blockchain Benefits for Regulated Industries,” finds that blockchain technology, a key technology underpinning cryptocurrencies and digital assets, may have potential in regulated industries such as healthcare and finance. It turns out that there is something.
