Cryptocurrency Boosts Silicon Valley Jeweler

RAPAPORT... Cryptocurrency transactions have grown to 20% of sales at a California-based retailer in the past year, enhancing the company's ability to clinch high-value deals, its CEO said.Stephen Silver Fine Jewelry, which implemented the system in 2014, claimsto be the first jeweler to accept cryptocurrency."Cryptocurrency has surpassed the volume of retail credit-cardpurchases in the company in a very short time period," CEO Stephen Silver, whois also a tech-startup investor, said recently. "We've created revenue that thecompany would not even enjoy without being able to accept cryptocurrency.... Large sums of money are where we are findingcryptocurrency to be a huge advantage."The move, led by company president Jared Silver (pictured), began as aneasier and more secure alternative to wire transfers, but also meant thejeweler received immediate payment, rather than the usual two-to three-day waitperiod for transfers. Additionally, investors save up to 1.5%, since purchasesmade with Bitcoin do not incur conversion fees.The jeweler has been weighing up blockchain technology as apayment option for years, with its customers asking to pay in cryptocurrency."Given that Stephen Silver Fine Jewelry is based in SiliconValley, the cradle of innovation, we've been monitoring the development ofblockchain technology since 2008," Jared Silver told RapaportNews. "In 2014, we felt it had matured to the point that we could bring thetechnology into our store."The payment method has become an "indispensable" tool, said JaredSilver.An average sale runs close to seven figures, and the retailer has no limit onthe amount it will process per purchase. Silver said he had received amillion-dollar cryptocurrency payment recently.The company also pays for any sourced goods it uses withcryptocurrency when able, but, Jared Silver noted, "this would be contingent onthe supply chain adopting the technology."Images: Stephen Silver Fine Jewelry