As Bitcoin's value has risen to a staggering $108,000, luxury brands are exploring accepting cryptocurrency payments to attract wealthy customers and connect with crypto investors.
Bitcoin has a market cap valuation of more than $2.1 trillion–nearing Google and Amazon's $2.4 trillion valuation.
Some brands, including Gucci, Balenciaga, and Tag Heuer, have already tested cryptocurrency payments, Reuters reported, with Printemps, the French department store, becoming the first European store to accept Bitcoin and Ethereum.
Consumers can make crypto payments through PayPal or Venmo.
Printemps acceptance of Bitcoin comes through a partnership with Binance and Lyzi.
Binance's partnership has already piqued the interest of other luxury brands adapting to changing consumer preferences for more efficiency and convenience.
"There have been quite a few calls - it's generated interest," David Princay, the president of Binance France, told Reuters.
Experts are forecasting other luxury brands, such as pen maker S.T. Dupont who will start accepting crypto payments at two Parisan stores, to follow suit.
For luxury companies, offering crypto payments can help them appear innovative, attracting younger, tech-savvy consumers.
The use of crypto as payment is still limited with many retailers transferring the funds to traditional currencies to avoid the risks of price fluctuations.
Despite this practice, Bitcoin's recent success of hitting the $108,000 mark in its market cap has encouraged more luxury brands to explore it as a legitimate payment method. It's also sparked optimism about a strategic Bitcoin reserve under President-elect, Donald Trump.
Gucci has allowed crypto payments in the United States since 2022.
Swiss luxury brand Tag Heuer launched a non-fungible token (NFT) viewer after Prada released an NFT collection built on the Ethereum blockchain.
