Should the cryptocurrency crash scare retailers? RetailWire – RetailWire

Aug 02, 2022

Nearly 75 percent of retailers plan to accept either cryptocurrency or stablecoin payments within the next two years, according to Deloittes Merchants Getting Ready For Crypto study.

The survey of 2,000 U.S. retail executives was taken in the first two weeks of December 2021, just before valuations on digital currencies collapsed.

According to Barrons, Bitcoin, the dominant token, continues to trade at around one-third of its November 2021 all-time high, with the market capitalization of the overall crypto space also tumbling.

Deloittes study, done in collaboration with PayPal, found retailers bullish on the digital assets potential:

Survey participants saw the top barriers to adoption to be security of the payment platforms, cited by 43 percent; followed by the changing regulatory landscape, 37 percent; and the instability of the digital currency market, 36 percent.

Cryptos crash has been dramatized by the meltdowns of stablecoin Terra, crypto hedge fund Three Arrows Capital and numerous crypto lending platforms, although risky assets overall, including tech stocks, have been battered inside the broader bear market.

Gucci, Balenciaga and Tag Heuer are among those this year joining Whole Foods, Nordstrom, PacSun and Crate & Barrel in accepting cryptocurrencies. American Eagle Outfitters drew attention for deciding not to accept crypto payments while recently launching an NFT apparel shop. Craig Brommers, American Eagles chief marketing officer, said at CommericeNext 2022, When we thought about our 15- to 25-year-old customer, the reality is they were not ready for cryptocurrency.

DISCUSSION QUESTIONS: Have you become any more or less confident about the value of cryptocurrencies as a form of retail payment since the start of the year? Have the barriers to adoption changed?

"Accepting cryptocurrency is a great business plan as long as you treat it as you would any foreign currency."

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Should the cryptocurrency crash scare retailers? RetailWire - RetailWire