Luxury Brands Adopt Cryptocurrency As Payment
Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.
Despite the overall market conditions and recent crash, luxury brands remain undeterred against accepting cryptocurrency as payment for their products. Among the brands that have announced accepting crypto are Philipp Plein, Gucci, Balenciaga, Franck Muller and Norgain, Louis Vuitton Moët Hennessy, Tag Heuer, Off-White, and the gym chain Equinox.
As a way to dip their toes into the new industry, most of the vendors have opened their coffers to cryptocurrencies at select brick-and-mortar locations. It’s evident that some are treading with caution and are using the pilot program to determine if and to what extent they will expand the acceptance of crypto in the future. For now, payments are limited to specific coins consisting predominantly of BTC, ETH, and USDT. For customers looking to pay in-store, they will be able to complete transactions using QR codes. Exactly as it occurs when transacting online, the purchase will follow real-time rates and convert the owed amount at the time of sale.
Initially, some could write off this trend as a publicity stunt to garner attention from this new wealthy demographic, but it’s difficult to ignore the widespread attention the space has gained over the past two years. Cryptocurrency and Web3 are no longer exclusive to a small community buried in the niche corners of the internet. In fact, the boom in NFTs and Web3 catapulted global and luxury brands alike into the crypto industry. This indicates two important things: first, those private companies believe in the formative power that cryptocurrencies will have in the future, and second, it’s not limited to accepting payments of coins or launching NFTs.
Even if brands don’t accept cryptocurrencies as payment, the use of blockchain as an authenticator for products and ownership is another way companies can engage with the crypto and Web3 ecosystem. The shortsightedness of critics is in assuming the only element of cryptocurrency is the coins themselves.