15-10-2023 (CALIFRONIA) Ferrari, the iconic Italian luxury sports car manufacturer, has ventured into the world of cryptocurrency by allowing customers in the United States to purchase their high-end vehicles using digital currencies. This move comes in response to growing demand from the company’s affluent clientele. Ferrari plans to extend this cryptocurrency payment option to Europe in the near future.
While many large corporations have been hesitant to embrace cryptocurrency due to its volatility and regulatory uncertainties, Ferrari has taken the bold step of accepting digital currencies as payment. Notably, Tesla, an electric car manufacturer, had briefly accepted Bitcoin as payment in 2021 before discontinuing the practice due to environmental concerns raised by CEO Elon Musk.
Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, revealed that cryptocurrencies have made significant strides in reducing their carbon footprint through the implementation of new software and increased reliance on renewable energy sources. He affirmed the company’s commitment to achieving carbon neutrality by 2030 throughout its entire value chain.
The decision to accept cryptocurrency payments was prompted by requests from both the market and Ferrari’s network of dealers, driven by a growing number of clients who have invested in cryptocurrencies. Galliera explained that these clients range from young investors who have amassed wealth through digital currencies to more traditional investors seeking to diversify their portfolios.
While certain cryptocurrencies, such as the second-largest by market capitalization, Ethereum (ETH), have made strides in improving energy efficiency, Bitcoin (BTC) continues to face criticism for its energy-intensive mining process.
In the first half of this year, Ferrari delivered more than 1,800 cars to its Americas region, which includes the United States. Galliera did not specify how many cars Ferrari anticipates selling through cryptocurrency transactions. He mentioned that the company’s order book is robust and fully booked well into 2025. Nevertheless, Ferrari aims to explore the potential of this expanding market to connect with individuals who may not be current Ferrari clients but could afford their luxury vehicles.
The company has partnered with BitPay, one of the largest cryptocurrency payment processors, to initiate cryptocurrency payments in the U.S. This partnership will enable transactions in Bitcoin, Ethereum, and USDC, a prominent stablecoin. Ferrari may collaborate with different payment processors in regions where cryptocurrency transactions are legally accepted.
Importantly, Ferrari assures that prices will remain consistent, without any additional fees or surcharges for customers using cryptocurrencies. BitPay will promptly convert cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers, safeguarding them from price volatility.
As the payment processor, BitPay will also ensure the legitimacy of the virtual currencies used in transactions, preventing the use of funds derived from criminal activities or tax evasion. Galliera noted that most of Ferrari’s U.S. dealers have already enrolled in the cryptocurrency payment scheme, and he is confident that more will follow suit in the near future.
