Key Takeaways
- Balenciaga has announced that it would now accept bitcoin payments at its major locations in the United States, including Madison Avenue in New York and Rodeo Drive in Beverly Hills, including on their website.
- The fashion business is still choosing on which payment solutions provider to utilise, but it will first take Bitcoin and Ethereum, with more currencies to follow in due time.
- Balenciaga is planning long-term about crypto, and swings in currency value are nothing unusual as per the company.
The cryptocurrency realm has essentially revolutionised hundreds of industries around the world, and now niche crypto assets are drawing the interest of some of the world’s largest fashion corporations.
Balenciaga is the haute couture house to officially declare that it has begun embracing cryptocurrency payments in its premier stores in the United States.
The French fashion house will accept Bitcoin (BTC) and Ethereum (ETH) payments in select U.S. locations, which includes Madison Avenue in New York and Rodeo Drive in Beverly Hills, as well as its online store.
Concerning the turbulent fluctuations in valuation, the company stated “Balenciaga is thinking long-term about crypto, and fluctuations in currency value are nothing new.”
The Kering-owned brand has joined Tag Heuer in accepting cryptocurrency. The LVMH Mot Hennessy Louis Vuitton-owned watch brand announced earlier this month that customers would be able to pay at checkout in one of 12 cryptocurrencies, including Bitcoin, Dogecoin, and Ethereum, utilising a BitPay solution.
Following customer feedback on the initiative, the company announced that it will expand its stores to certain other regions in the coming years.
The announcement does not appear to have come at the right time, provided that the cumulative cryptocurrency market is underwater by a significant margin, with over $1 trillion wiped out in the last two weeks.
The new venture is well-supported, but some believe that poor people do not have enough time to acquire cryptocurrency.
Gucci announced earlier this month that it is entering the cryptocurrency market. The brand will begin accepting cryptocurrency payments in select US stores at the end of this month, with plans to expand the venture to all of its directly operated North American stores by the summer. The move represents significant affirmation for the currency from a leading luxury brand.
In-store crypto payments will be made via an email link that contains a QR code that allows the customer to complete the payment from their crypto wallet. Wooster Street in New York, Rodeo Drive in Los Angeles, Miami Design District, Phipps Plaza in Atlanta, and The Shops at Crystals in Las Vegas were the first Gucci locations to accept cryptocurrency.
Gucci has begun to move on a Web3 parenthood binge, releasing two NFT collections in 2022: the “SUPERGUCCI” collection in February in partnership with toy brand SUPERPLASTIC, and the “Gucci Grail” collection in March, which is aimed at holders of established blue-chip NFT projects like Bored Ape Yacht Club, Pudgy Penguins, and World of Women.
High-end businesses have started experimenting with Bitcoin and Web3. Hublot, a luxury watch company owned by LVMH, produced a limited-edition collection that could only be bought using Bitcoin. In February, the company collaborated with cold wallet provider Ledger to release a limited edition watch and the Ledger Nano X.
Even auto dealerships and manufacturers are taking digital assets for high-end vehicles. Watch brands Franck Muller and Norgain, as well as fashion designer Phillipp Plein, also take bitcoin.
