Sotheby’s to Accept Bitcoin and Ether for Banksy Sale This Month
Auction house Sotheby’s announced today that, for the first time, a work of art at one of its auctions may be purchased with cryptocurrency. In partnership with cryptocurrency exchange Coinbase, Sotheby’s said the Banksy painting Love Is In The Air will be auctioned on May 12 in New York, and bids can be placed in either Bitcoin or Ether.
Sotheby’s has moved steadily toward accepting digital forms of value for art. The house previously sold works by crypto-native artist Pak as NFTs; that three-day sale attracted more than 3,000 bidders and brought the collection to a final price of $16.8 million.
Stefan Pepe, Sotheby’s Chief Technology Officer, said: “With the growing adoption of digital art and NFTs, along with our increased focus on digital innovation, we’ve seen an increasing appetite among collectors for more seamless payment options when doing business with Sotheby’s. Leveraging the trusted exchange Coinbase is a natural progression and is in line with our dedication to enhancing our client buying experience and developing new ways to expand our client base by meeting them where they are.”
When asked in an interview with CNBC whether the sale price would be converted to dollars, Sotheby’s CEO Charles Stewart said: “We have an agreement with the owner of the painting, the consigner of the painting, so that will ultimately be up to them. Part of the partnership with Coinbase gives us not only the ability to process the payment, but that possibility as well.”
Tax implications are an important consideration for buyers. The U.S. Internal Revenue Service treats Bitcoin and other cryptocurrencies as property, which means using them to purchase goods can trigger a taxable event. If the currency has appreciated since it was acquired, the buyer may owe capital gains tax on the difference.
The Banksy image depicts a masked figure throwing a bouquet of flowers and is estimated to fetch between three and five million dollars.