The new spring of cryptocurrencies

A few years ago, the world of cryptocurrencies, blockchain, and NFTs burst onto pop culture like a bolt from the blue, igniting a frenzy among tech enthusiasts, fashion brands, and various celebrities. However, this excitement fizzled out rather quickly. But now that Donald Trump has promised to transform the US into the world capital of cryptocurrencies, the narrative seems to have shifted – not because cryptocurrencies are suddenly cool, but because their reintroduction into public discourse feels imposed rather than welcomed. Companies like Printemps, the renowned French department store with a 159-year history, are confronting this shift head-on. The company has decided to integrate cryptocurrency payments in its 20 French stores, allowing customers to pay with Bitcoin, Ethereum, and stablecoins. This decision makes Printemps the first European department store to adopt cryptocurrencies on a large scale. Beyond its French locations, Printemps also has a department store in Doha, Qatar, and plans to open another in New York next year. Accepting cryptocurrency payments positions the company to align with a US market that might soon undergo a dramatic transformation in the crypto ecosystem. Following Trump's election, Bitcoin has seen a resurgence close to its all-time highs, triggering renewed interest from both consumers and businesses. This could signify a new wave of cryptocurrency adoption, creating opportunities for retailers like Printemps and brands to attract crypto-savvy customers in one of the most lucrative markets in the world. 

This new crypto spring, however, doesn't seem limited to America and the crypto-bros who talk about mindset and follow alt-right podcasts religiously. Europe is also grappling with the blockchain world by introducing regulatory innovations like Digital Product Passports (DPPs). Born as part of the EU's Ecodesign Regulation for Sustainable Products, DPPs aim to improve transparency and sustainability for nearly every conceivable product by assigning each item a unique digital identity containing information about materials, origins, and environmental impact. Their implementation is still a ways off, as DPPs are slated to be introduced in 2025 and fully mandatory by 2026. Luxury brands like Dior, Zegna, and Prada have already been leveraging blockchain technology to create digital certificates for their products, accept payments, and develop unique experiences. These certificates serve multiple purposes, from authenticating items to enabling services like resale and repair. Mugler, for instance, has used DPPs to authenticate its bags, ensuring long-term value for customers, while Prada is preparing to extend DPP usage to all its collections. The Aura Blockchain Consortium, an alliance of luxury brands, has already created over 20 million blockchain-based IDs, ultimately serving as a tool to extend brand control over products well beyond the point of sale. Needless to say, counterfeiters are also working on this front, as explained last week by one of Vinted's authenticators. 

In any case, the convergence of cryptocurrency payments and blockchain-based DPPs marks a new stage in the evolution of the relationship between consumers and brands. The current gamble goes beyond traceability (a separate chapter could be opened on how cryptocurrencies are often the currency of criminals and traffickers, with $14 billion dedicated to terrorism financing and money laundering in 2021 alone), and it promises to represent a cultural shift that could redefine global commerce – especially in the luxury sector. Historically, crypto market booms have funneled wealth into high-end goods, and with the luxury sector facing a slowdown, this renewed interest could provide a vital boost to sales. This is particularly true given that, years after the NFT craze, the technology underpinning the entire world of cryptocurrencies and blockchain is maturing. While early experiments with blockchain, like NFTs during the 2020-2021 boom, often lacked clear utility, the focus has now shifted to creating technologies capable of improving the shopping experience. Of course, this technology isn't solely for oligarchs, declared or otherwise, as the introduction of DPPs challenges all goods producers to integrate blockchain technology into supply chains and manufacturing processes – likely leading to further cost increases. It also remains to be seen whether the energy consumption required to sustain these technologies pollutes more than everything else.

It is likely, however, that these remain a reality reserved for elites, as authenticating a luxury watch or dress with blockchain is one thing, but no one might ever care about digital passports for cheaper goods – fast fashion consumers are notoriously willing to overlook traceability in favor of savings, and many interfaces ensuring product validity have already been counterfeited. While it's easy to imagine the general public verifying food or automotive products to understand their origins, it's harder to picture Shein or H&M customers tracing their garments' provenance: it's a matter of trust, difficult to maintain in a world where everything can be falsified. In any case, the coming years will determine whether this revival leads to real transformation or whether the return of crypto will just be another chapter in the history of digital commerce. What is certain, however, is that the foundations being laid today suggest that cryptocurrencies and blockchain are not just the future but the present.