Growing acceptance of cryptocurrency and implementation of blockchain solutions in the luxury goods industry.
Following the huge expansion of the cryptocurrency market cap and the subsequent wave of newly minted ‘crypto millionaires’, many luxury goods companies have begun accepting cryptocurrency payments for their high-class products.
The acceptance and adoption of digital currencies has been exponentially increasing in recent years as multinationals realise the potential profit from targeting those of today’s ‘new money’.
Purchasing Off-White for Cryptocurrency? Now You Can Do It.
Luxury label Off-White is now accepting cryptocurrency payments in its London, Paris and Milan flagship stores.
Customers will be able to purchase the brand’s clothing with Bitcoin (BTC), Ethereum (ETH), Binance Coin (BNB), Ripple (XRP), and stablecoins including Tether (USDT) and USD Coin (USDC). Further, customers will enjoy a no-payment limit following fraud checks.
“This is an important step in the growth of the brand that looks towards the future, including Web 3.0 technologies as well as understanding the needs and desires of its ever-evolving customer base,” a statement from the brand reads.
There is an increasing trend for fashion houses to delve into the world of cryptocurrency as payments. Luxury watch brand Hublot launched crypto payments in February 2022, while Italian luxury streetwear Philipp Plein launched its crypto payment plan in August 2021.
Crypto interest is not only limited to luxury fashion, TJB Super Yachts has announced that they would begin accepting cryptocurrency for the leasing and buying of their yachts, accepting Bitcoin and Litecoin (LTC).
Virgil Abloh and Web 3.0
Prior to his death last November, Off-White founder Virgil Abloh was working towards a decentralised autonomous organisation (DAO) that enables trade of NFTs and physical works by globally renowned artists. The project “SKYSCRAPER” was, in Abloh’s own words, an opportunity to “inch us a little closer toward a utopia for creativity”. Abloh’s legacy would have included the Skyscraper DAO, NFTs and even a social token.
Given Abloh’s presence in the development of Web 3.0, it comes to no surprise that his brand is now accepting cryptocurrency payments. Nevertheless, Off-White’s parent company LVMH does not share the same vision as its designer, with Bernard Arnault of LVMH stating that “We’re (LVMH) not interested in selling virtual sneakers for 10 euros”.
High Fashion and Blockchain Solutions
While Arnault has made statements that can be seen as negative towards NFT technology in the past, LVMH is actively incorporating blockchain systems into its businesses. Along with the Prada Group, Cartier and Richemont, LVMH has created the Aura Blockchain Consortium.
Aura is a non-profit project that is aiming to put luxury products onto a Blockchain to allow customers to directly authenticate their items and to allow the fashion industry to strike back against counterfeit goods. The project also aims to increase transparency about the sources of raw materials used and production conditions to combat issues such as deforestation and modern slavery and improve the ESG rating of the companies involved.
Digital assets and its underlying technology is continuing to see growth every day, what will be the next major industry to accept cryptocurrency?