Renowned luxury sports car maker Ferrari joins the growing list of companies that accept cryptocurrency and is now accepting digital currency payments for its vehicles in the US, with plans to expand the service to Europe in response to demand from wealthy customers. As reported by ReutersThe move comes amid the reluctance of most leading companies to accept cryptocurrency due to volatility and regulatory complexity.
In 2021, Tesla initially embraced Bitcoin payments, but halted the process due to environmental concerns. Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, demonstrated a different perspective, citing the crypto industry’s efforts to minimize its carbon footprint through new software and greater reliance on renewable resources.
“Our goal to achieve carbon neutrality across our entire value chain by 2030 has been absolutely confirmed,” he explains.
The market and dealers prompted Ferrari’s decision, as many customers have significant crypto investments. The customer base is diverse, from young investors who have made their wealth in cryptocurrencies to more traditional investors looking for diversification. Despite the improvements in energy efficiency of some cryptocurrencies such as Ether, Bitcoin still faces backlash due to its energy-intensive mining process.
Given the company’s strong order book, fully booked until 2025, Galliera did not specify the number of cars Ferrari expects to sell via crypto payments, but indicated that it plans to explore this growing market. Accepting cryptocurrency payments is also a strategy to connect with potential customers who can afford a Ferrari.
Ferrari, which sold 13,200 cars in 2022 with prices ranging from 211,000 to 2 million euros, aims to implement its crypto scheme in Europe in the first quarter of next year. The company then plans to expand to other regions where crypto is legally accepted, reinforcing Galliera’s statement that interest in crypto payments is consistent between the US and Europe.
For this initiative, Ferrari is partnering with BitPay, one of the largest cryptocurrency payment processors, for its initial US operations. The company will allow transactions in Bitcoin, Ether and USDC, a leading stablecoin. BitPay will instantly convert cryptocurrency payments into traditional currency, protecting Ferrari’s dealers from price volatility. Galliera assured: “The prices will not change, no fees, no surcharges if you pay via cryptocurrencies.”
BitPay also plays a crucial role in ensuring the legitimacy of the virtual currency used, preventing its use in criminal activities or tax evasion. With most U.S. dealers having already joined the plan, Galliera expressed confidence that others would join soon.
Ferrari’s move to accept cryptocurrency highlights the increasing influence and acceptance of digital currencies across industries. As companies like Ferrari continue to venture into this growing domain, it will be interesting to keep an eye on the evolution of the relationship between cryptocurrencies and the traditional economic sectors.