I have to put it out there; for years, I wasn't sure that the whole concept of cryptocurrency was for me, but with everything that happened in the stock market during the pandemic, I decided to take a leap of faith and let me tell you, it was 100% worth it. For those of you who are new to the concept of "cryptocurrency," the following few sentences are for you. It is a digital or virtual currency secured by cryptography, making it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology- a distributed ledger enforced by a disparate network of computers. Furthermore, they enable secure online payments without using a third-party mediator.
Additionally, cryptocurrencies can be mined or purchased from cryptocurrency exchanges. With that said, not all e-commerce sites allow purchases using cryptocurrencies. In fact, cryptocurrencies, even popular ones like Bitcoin and Ethereum, are hardly used for retail transactions.
That said, Gucci is taking the leap of faith and joining the crypto crowd. The brand will start accepting cryptocurrency payments in some US stores at the end of the month and plans to extend the pilot to all its directly-operated North American stores this summer. This extraordinary move marks a significant validation for the currency from a leading luxury brand. In-store crypto payments will be made with a link sent via email to the customer; once opened, they will find a QR code that will allow them to execute the payment from their crypto wallet. Gucci will accept payments in more than ten currencies, including Bitcoin, Bitcoin Cash, Ethereum, Wrapped Bitcoin, Litecoin, Shiba Inu, Dogecoin, and five stable coins pegged to the US dollar.
Crypto payments are usually accepted in physical space through a QR code or NFC reader on an existing point of sale terminal that connects with a customer's smartphone cryptocurrency app, similar to mobile credit card payments. A retailer can automatically convert the payment to fiat currency, such as US dollars, or keep the payments in cryptocurrency.
As different businesses are slowly joining this up-and-coming concept, we can probably expect to notice several apps with a similar idea to Venmo. Personally, I came across one such company--Oobit-after reading their recent PR on a new mobile payments app for crypto. Oobit first launched in 2017 to increase cryptocurrency adoption in everyday life, and are registered in APAC, the EU, and Israel--all hot spots of mainstream crypto adoption I might add. In a nutshell, Oobit offers a fast and easy way to pay individuals and also businesses. They've got a utility token, OBT, for use inside the Oobit ecosystem. The idea behind this unique concept is that anyone in the world can send and receive crypto payments in seconds with 0 fees, which is pretty revolutionary given the current constraints on cross-border payments, fiat on/off-ramps, crazy fees and wait times, etc.
If that's not an advantage and unique feature, how about their up-and-coming concept of an Oobit's Visa card that acts a bank card that allows you to withdraw cash from ATMs worldwide. Also, when spending through a standard debit card, your digital assets are sold and connected to fiat, triggering a taxable event. The Oobit Visa card allows you to pay without selling your crypto; hence no taxable event will occur. Additionally, you can buy and track more than 35 types of crypto while also managing your balance on the go. In other words, this company seems to on the right track in bringing a tangible payment PRODUCT to market, a relative rarity these days for the broader crypto market aswim with shell ICOs and hype but no actual business so to speak of.
Based on everything mentioned herein, there is no doubt that we are slowly entering a new era of crypto payment apps and purchasing via cryptocurrencies. I mention one new name here--Oobit--this is responding precisely to this market gap. They've got an interesting product on the market and I'm looking forward to where their project, alongside those of competitors, end up going. But at the end of the day I genuinely believe that Gucci's move points to the start of a new trend where consumers want the ability to make payments for anything and everything, from rent to gas to bubblegum, in crypto. As the crypto world absorbs and bounces back from the Luna/Terra/Tether debacle, its companies like Oobit--properly registered, have a legitimate product, play by the rules--that will come out on top.
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