Luxury brands began accepting cryptocurrency payments after Bitcoin took off

Due to the rapid growth of Bitcoin, a number of high fashion brands and retailers have begun to show interest in using cryptocurrencies as a means of payment to attract new customers and strengthen the loyalty of crypto investors, writes Reuters.

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Until recently, only a few luxury brands, including LVMH, watch brands Hublot and Tag Heuer, and Kering-owned fashion houses Gucci and Balenciaga, had experimented with using cryptocurrency payments.

In recent weeks, French luxury department store chain Printemps announced a partnership with the world’s largest cryptocurrency exchange Binance and French fintech company Lyzi to accept cryptocurrencies including Bitcoin and Ethereum in its stores in France, becoming the first retail chain in Europe to use payment in cryptocurrency.

David Princay, president of Binance France, told Reuters the company is in talks with other luxury brands about collaborations. Manufacturer of luxury lighters and pens S.T. Dupont told the news agency that it will accept payments in cryptocurrency at two Parisian stores as part of pre-holiday trading.

Cruise line Virgin Voyages also reportedly began offering its first product with Bitcoin as a payment option this month, a $120,000 annual pass for up to a year on its cruise ships.

Cryptocurrencies have always been considered high-risk assets with limited real-world use. In addition, high volatility was a serious obstacle to their use as a means of payment.

However, the election of US President Donald Trump, who has repeatedly expressed support for the cryptocurrency market and who is expected to introduce friendlier regulation of electronic currencies, triggered a record rise in Bitcoin. S&P analysts argue that innovations in blockchain in financial markets can increase the predictability of cryptocurrency prices.