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- Watch chain Tag Heuer, owned by LVMH, announced on Thursday that it will accept cryptocurrency payments on its US website, according to a press release.
- Tag Heuer now accepts 12 cryptocurrencies via BitPay, including Bitcoin and Dogecoin, and allows crypto transactions of up to $10,000.
- “As an avant-garde watchmaker with a spirit of innovation, we knew that despite the fluctuations, TAG Heuer would adopt global integrated technology in the near future – a technology that will revolutionize our industry and beyond,” CEO Frédéric Arnault said in a statement. .
Overview of the dive:
Tag Heuer’s announcement comes as other LVMH brands and luxury fashion houses competing with Kering are investing in Metaverse and Web3, the concept of a new phase of the Internet powered by blockchain technology.
Two brands owned by Kering have announced that they will start accepting crypto to some extent this month. Balenciaga will start soon accept Bitcoin and Ethereum as payment method at its flagship stores in the United States and online, as reported by Women’s Wear Daily. Earlier this month, Gucci announced it would begin accept crypto as payment in select stores in the US† The luxury brand even announced that it would upgrade crypto returns in crypto, rather than offer store credit like the Off-White brand.
As Arnault mentioned, cryptocurrency fluctuations are a risk that businesses must bear if they allow this payment method. This month, the cryptocurrency had one of the most volatile trading weeks in the past two years† the TerraUSD Coin Crashedfall below $1 peg despite being considered a stablecoin. Last week, Rohit Chopra, director of the Consumer Financial Protection Bureau warned companies: tell Bloomberg that stablecoins may not be ready for payment†
Accepting crypto means that a company must be prepared for logistical situations such as: handle refunds for irreversible crypto-only transactions and dealing with capital gains taxes† Larger luxury stores that handle fewer transactions with higher prices are likely to be better equipped to encourage such payments.
Despite this, not all companies handling large dollar transactions have succeeded in making crypto payments. Tesla stopped accepting crypto payments last May, citing environmental implications. The announcement came as news spread about: the tax consequences for customers who liquidate their coins† Shortly after Tesla stopped taking crypto, the US government announced that crypto transactions of $10,000 or more must be reported to the IRS for investigating suspicious activity – something that previously only had to be paid in cash.
Luxury brands like Gucci have also set their sights on technology such as non-fungible tokens. Gucci has spent the past year NFT partnerships launched with artist groups like 10KTF and Superplastic.
While brands under LVMH and Kering are throwing themselves completely into the metaverse and blockchain technology, luxury brand Hermès has remained more conservative with its digital involvement. the shopkeeper has filed a strike request with an artist regarding his NFTs called “MetaBirkins‘, sparking a legal debate about trademark infringement in the metaverse.
During the day a general meeting in AprilHermès CEO Axel Dumas has shown limited interest in the metaverse.
“Right now we are interested in seeing how this world evolves and changes,” Dumas said during the call, according to multiple outlets. “But that is not our priority. We are mainly interested in learning and monitoring, rather than rushing into the metaverse.”