Ferrari announces its embracing crypto payments amid market demands Ferrari announces its embracing crypto payments amid market demands
Ferrari takes a detour into crypto payment exploration, chases after carbon neutrality.
2 min read
Updated: Oct. 14, 2023 at 3:34 pm UTC
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Joining the growing list of companies accepting cryptocurrency, renowned luxury sports car manufacturer Ferrari is now accepting digital currency payments for its vehicles in the U.S., with plans to expand the service to Europe in response to demand from wealthy clients. As reported byย Reuters, this move comes amidst the hesitation of most prominent companies to accept cryptocurrency due to its volatility and regulatory complexities.
In 2021, Tesla initially embraced Bitcoin payments, only to halt the process due to environmental concerns. Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, demonstrated a different perspective, citing the efforts of the crypto industry to minimize its carbon footprint through new software and increased reliance on renewable sources.
“Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed,” he explained.
The market and dealers prompted Ferrari’s decision, as many clients have significant crypto investments. The client base is diverse, from young investors who amassed their wealth in cryptocurrencies to more traditional investors seeking diversification. Despite the energy efficiency improvements of some cryptocurrencies like Ether, Bitcoin still faces backlash for its energy-intensive mining process.
Given the company’s strong order portfolio, fully booked until 2025, Galliera did not specify the number of cars Ferrari expects to sell via crypto payments, but indicated their intent to explore this expanding market. Accepting cryptocurrency payments is also a strategy to engage with potential clients 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 by the first quarter of next year. The company then plans to extend it to other regions where crypto is legally accepted, reinforcing Galliera’s statement that interest in crypto payments is consistent between the U.S. and Europe.
For this initiative, Ferrari has partnered with BitPay, one of the largest cryptocurrency payment processors, for its initial U.S. operations. The company will permit transactions in Bitcoin, Ether, and USDC, a leading stablecoin. BitPay will immediately convert cryptocurrency payments into traditional currency, safeguarding Ferrari’s dealers against price volatility. Galliera assured, “Prices will not change, no fees, no surcharges if you pay through cryptocurrencies.”
BitPay also plays a crucial role in ensuring the legitimacy of the virtual currencies used, preventing their use in criminal activities or tax evasion. With most U.S. dealers already on board with the scheme, Galliera expressed confidence in others joining soon.
Ferrari’s move to accept cryptocurrency highlights digital currencies’ increasing influence and acceptance in various sectors. As companies like Ferrari continue to venture into this expanding realm, keeping an eye on the evolution of the relationship between cryptocurrencies and the traditional economic sectors will be interesting.
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Bitcoin
$97,539.65
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
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Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
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USD Coin (USDC) is a stablecoin fully backed by the US dollar and developed by the CENTRE consortium.
