Ferrari now accepts cryptocurrency for car payments

WEB DESK: Italian luxury carmaker Ferrari has embraced the world of cryptocurrencies by allowing payments in digital assets for its high-end sports cars in the United States.

The initiative, driven by requests from their wealthy customer base, is set to expand to Europe soon.

This move is in stark contrast to many other major companies, which have hesitated to adopt cryptocurrencies due to their volatile nature and regulatory uncertainties.

Tesla, for example, initially accepted Bitcoin payments in 2021 but later suspended the programme due to environmental concerns raised by CEO Elon Musk.

Unlike its counterparts, Ferrari is actively working to reduce its carbon footprint by incorporating new software and relying more on renewable energy sources.

The company has set an ambitious goal to achieve carbon neutrality across its entire value chain by 2030.

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Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, revealed that the decision to accept cryptocurrency was influenced by market demands and input from Ferrari’s dealers, many of whom have clients involved in cryptocurrencies.

Some of Ferrari’s cryptocurrency customers are young investors who have amassed wealth through digital assets, while others are traditional investors seeking to diversify their portfolios.

To facilitate these transactions, Ferrari has partnered with BitPay, a leading cryptocurrency payment processor. In the initial phase of the programme, payments can be made using Bitcoin, Ether, and USDC, a stablecoin.

This move is not only expected to broaden Ferrari’s customer base but also to connect with potential clients who might not typically consider purchasing a Ferrari.

BitPay will handle cryptocurrency payments on behalf of Ferrari’s dealers and swiftly convert them into traditional fiat currency, safeguarding both the company and its dealers from the volatility associated with cryptocurrencies.

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Although Ferrari did not specify the number of cars expected to be sold through cryptocurrency, Galliera noted that the company’s order portfolio is robust, with bookings extending into 2025.

This foray into the crypto world is viewed as an opportunity to engage with a wider audience.

Looking ahead, Ferrari plans to extend its cryptocurrency payment scheme to Europe in the first quarter of 2024. The company also intends to explore opportunities in regions where cryptocurrencies are legally accepted.

Europe, the Middle East, and Africa collectively represent Ferrari’s largest market, accounting for 46 per cent of its car shipments in the first half of the year.

Galliera expressed confidence that most of Ferrari’s US dealers have either enrolled in the cryptocurrency payment programme or are in the process of doing so, with expectations of more joining soon.