As we recently reported on, China is pressing ahead with the development of its state-backed digital currency as it increasingly sees the economic benefits arising from the introduction of adopting blockchain technology. Arguably this has been driven by pressure from Facebooks Libra coin and its links to Chinese powerhouses such as Alibaba and Tencent. With the Peoples Bank of China (PBOC) recently devaluing the Yuan investors and suppliers of luxury brands are seeking more stability and exploring digital currencies.
The fashion industry, adept at forecasting the impact of the latest trends, was one of the first industries to explore blockchain with Ukraine hosting the first Blockchain Fashion Conference last year showcasing blockchains ability to bring accountability and transparency.
Luxury buyers are demanding sustainability and supply chain visibility, and blockchain is, of course, the ideal tool for this. Track-and-trace technology can be used where the digital identity of goods are given a ‘digital twin’ through attaching a cryptographic seal or serial number which is recorded on the blockchain.
While the first blockchain fashion conference was held further afield, it was Chinese fashion companies pioneering the use of blockchain and fashion. As far back as 2016 at Shanghai Fashion Week, Babyghost, a brand-led by Qiaoran Huang and Joshua Hupper wowed crowds with a fashion collection fitted out with equipped with blockchain-enabled Near-Field Communication (NFC) chips and an accompanied by an anti-counterfeiting smartphone app called VeChain. VeChain was created by BitSE, a Shanghai-based blockchain startup founded by former IBM, Louis Vuitton, and Alibaba employees. VeChain’s product management solution integrated with blockchain technology attaches unique IDs on the blockchain to verify if an item is genuine or not.”
Chinese innovation is also evolving the way we use e-commerce with companies such as Bitfash, which offers products from Zara, Mr.Porter, and Forever 21 in exchange for Bitcoins, are opening their stores to digital currencies. Leading fashion website Luxury Society mentions that wealthy consumers can shop on BitDials, BitLuxuria, and CryptoEmporium where they can pay in Bitcoins for “high-end luxury and fashion goods such as Lamborghinis, Bentleys, luxury watches, jewellery, high fashion, and various highly exclusive products and goods.”
Paul Moynan CEO of Dragon, said, ‘you can see the strong link between the luxury industry and digital currencies continues to grow. As both commodities are rare, they will increase in value, so our key audience of VIP Gamers and High Net Worth individuals naturally gravitate toward them. With VIP Gamers tending to travel extensively, the Dragon Social Wallet provides the ultimate convenience for them by lowering cross border fees and removing issues with intermediaries.’
Brands operating in China already lead in the blockchain revolution since they operate in a market where strong centralization and state control ensures safer processes. Only time will tell if Western businesses can catch up and take advantage of these new technologies in China’s growing luxury market. For more news, visit the Dragon Blog now and then download your free Dragon Social Wallet and try out its luxurious features for yourself.