How the Trump Administration Is Stoking Interest in Crypto

Merchant interest in accepting cryptocurrencies continues to expand, with headline progress stemming from high-end luxury-goods segments. The latest example comes from ECD Auto Design, a Kissimmee, Fla.-based dealer in restored luxury cars. The company on Thursday announced it is accepting crypto for vehicle purchases.

ECD’s move comes as digital currencies like Bitcoin gain a higher profile with the inauguration of the Trump Administration, which has been vocal about the advantages of enabling more crypto transactions. “We’re seeing interest increase” since the inauguration, says Merrick Theobald, vice president of marketing at BitPay Inc., a crypto transaction processor and the platform for ECD’s move into crypto acceptance. BitPay’s internal data compare the periods December 20 to January 14 and January 20 to Feb. 14. Volume for the latter period was up 36%, while payment count grew 24% and average order value increased 11%.

“Overall, we’re seeing crypto spending up. People are spending more, and more often,” Theobald notes, adding not all of the spending is going toward autos, luxury goods, and other high-end purchases. Retail in general and apparel are among the categories where volume has jumped, Theobald says. “It’s more mainstream now,” he says, adding that buyers cashing in on investment gains over recent months has helped fuel spending.

Merchants, he says, are likely to be attracted to advantages of Bitcoin and other digital currencies, such as visibility for all transactions and no chargebacks. “They don’t have to deal with the crypto itself,” he says. “You don’t have to have a crypto wallet, and it settles the next day.” 

Despite news that auto dealers and other high-end merchants are accepting crypto, many “unknowns” linger around digital currencies, Theobald says, adding that many people continue to suspect the money is somehow “illegal.” But the advent of the new administration in Washington, he says, has helped dispel misinformation through discussion of such facilities as a strategic Bitcoin reserve. 

“The educational aspect is advancing,” he says. “With the ledger, you can see every transaction [between wallets].”

For its part, ECD is receiving next-day settlement in U.S. dollars, according to BitPay, in a move that could dispel qualms about volatility. Bitcoin’s price swings, for example, reached a six-month high Thursday, as its 30-day volatility measure hit 3.6%, up from 1.6% 30 days earlier. The coin was trading at $83,974 at midmorning Friday, down nearly 2.5% from its price 24 hours earlier, according to Coinmarketcap.

For now, though, the outlook at companies like Atlanta-based BitPay is optimistic. “Having an administration that’s favorable not only to crypto but to blockchain in general, that makes companies more comfortable having these discussions or working with companies like us,” says Theobald. “We don’t want regulation, but we want clarity so companies feel comfortable working with us.”