Tag Heuer has started accepting cryptocurrency online in the United States, becoming the first brand in luxury conglomerate LVMH’s portfolio to do so.
The Swiss watchmaker, which is led by LVMH chairman Bernard Arnault’s son Frédéric, called the move a “significant step on its digital transformation journey.”
Tag Heuer’s e-commerce site partnered with digital payments provider BitPay in order to accept 12 cryptocurrencies, including Bitcoin, Ethereum, Dogecoin and 5 USD-pegged stablecoins.
“With an increasing number of customers using or earning digital currencies regularly, TAG Heuer intends to be a key player in the imminent transformation of the e-commerce and retail spaces,” the brand said, adding that it had other projects in the pipeline linked to blockchain technology, like NFTs.
The news comes just weeks after LVMH’s rival Kering rolled out cryptocurrency payments in certain US stores for its flagship Gucci brand.
While Tag Heuer is much smaller than LVMH’s leading fashion labels like Louis Vuitton and Dior, its push into crypto could be a bellweather of broader interest within luxury’s biggest company. The watchmaker’s 27 year-old CEO attended Polytechnique, the same elite engineering school as chairman Arnault, and is seen as an increasingly influential player within the group.
“We have been following cryptocurrency developments very closely ever since Bitcoin first started trading,” Frédéric Arnault said, adding that the digital money “promises to be a globally integrated technology in the near future despite the fluctuations — one that will deeply transform our industry and beyond.”
LVMH previous forays into accepting cryptocurrency had been limited to a one-off special release at watchmaker Hublot. The price of Bitcoin has tumbled in recent months, with its value against the US dollar falling by around half from its highs in November.
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Will Luxury Brands Start Accepting Crypto?
Philipp Plein is going for it, and some of the industry’s biggest brands have considered accepting Bitcoin, Ethereum and other blockchain-based payments. But the risks might still outweigh the benefits for more established players.
Disclosure: LVMH is part of a group of investors who, together, hold a minority interest in The Business of Fashion. All investors have signed shareholders’ documentation guaranteeing BoF’s complete editorial independence.
