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Are Luxury Brands Gearing up to Accept Cryptocurrency?

Are Luxury Brands Gearing up to Accept Cryptocurrency?

It seems that cryptocurrencies are infiltrating the fashion world, as a number of luxury brands gear up to accept digital tokens as payment. 

‘Crypto King’ 

Among the first to adopt the new payment method, Philipp Plein International Group recently partnered with Coinify, the crypto payments platform that Voyager Digital owns. Under the group is Philipp Plein, Plein Sport, and Billionaire. Customers of the labels can use one of the 15 accepted digital currencies to pay for items both online and in brick-and-mortar stores.  

“I believe that cryptocurrencies are the future and my team and I have made a major commitment in time and resources, performing all necessary system modifications in order to adopt this new type of currency,” said Philipp Plein, the group’s eponymous founder and self-professed ‘Crypto King’. “I am very pleased to be able to offer to our customers this additional payment tool and the flexibility associated with it.” 

Expanding in the Digital Space 

According to reports, LVMH Moët Hennessy Louis Vuitton and Richemont might be next. Executives from both firms have confirmed that they are monitoring the crypto space closely and considering accepting digital tokens as payment. 

Back in 2019, LVMH initiated the Aura platform, which promotes the use of a single blockchain solution to luxury brands worldwide. The idea is that it will increase transparency around luxury shopping and help customers trace the authenticity of their goods. Prada Group and Richemont joined the consortium, and Bulgari, Prada, Louis Vuitton, Hublot, and Cartier are already keyed into the platform. 

Timothy Iwata Dury is the Innovation Director at Cartier (which is owned by Richemont) and the director of the Aura Blockchain Consortium. When discussing the brand’s plans for the digital space, Iwata Dury said, “Cartier, for example, began investigating crypto space more than three years ago. The situation has evolved significantly since then, and solutions to alleviate some concerns are now on the market. [But] The infrastructure isn’t very mature yet.” 

Burberry and Louis Vuitton are making moves in the digital space, too. On August 11th, Burberry intends to introduce its first NFT through a collaboration with Blankos Block Party, and on August 14th, Louis Vuitton will begin awarding its first NFTs to players of ‘Louis the Game’. 

What’s Next? 

It appears that multiple luxury brands could be poised to accept cryptocurrencies at the point of payment. Industry insiders are speculating as to which one will follow Philipp Plein International Group. 

Ian Rogers, the former chief digital officer of LVMH and the current chief experience officer of French cryptocurrency start-up Ledger, suggests that “if there is demand, LVMH may start accepting cryptocurrencies tomorrow.” At the time of writing, LVMH Moët Hennessy Louis Vuitton (LVMH) has a market capitalisation of €354.06 billion

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