Ferrari is now accepting cryptocurrency payments for its high-end sports cars in the United States and plans to expand this payment option to Europe in response to requests from its affluent clientele, as revealed by the company’s marketing and commercial chief.
The vast majority of blue-chip companies have steered clear of crypto as the volatility of bitcoin and other tokens renders them impractical for commerce. Patchy regulation and high energy usage have also prevented the spread of crypto as a means of payment.
An example of this is Tesla, the electric car manufacturer, which briefly ventured into accepting bitcoin as payment in 2021, led by CEO Elon Musk. However, this endeavor was later halted due to concerns related to its environmental impact.
Ferrari Cryptocurrency Payments Goes Green
In a statement to Reuters, Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, mentioned that cryptocurrencies have been actively working to diminish their environmental impact by implementing innovative software solutions and increasing their reliance on renewable energy sources.
He affirmed, “Our commitment to achieving carbon neutrality across our entire value chain by 2030 remains unwavering.”
Ferrari explained that this decision was prompted by market demands and requests from its network of dealers, driven by the fact that many of their customers have invested in cryptocurrencies.
“Some of these clients are younger investors who have amassed their wealth through cryptocurrencies,” he noted, “while others are more traditional investors seeking to diversify their investment portfolios.”
Although certain cryptocurrencies, such as the second-largest, ether, have made strides in improving their energy efficiency, bitcoin continues to face criticism for its energy-intensive mining process.
In the first half of this year, Ferrari delivered over 1,800 cars to its Americas region, encompassing the United States.
Enrico Galliera did not specify the number of cars Ferrari anticipated selling through cryptocurrency transactions. He did mention that the company’s order backlog was robust and booked well into 2025, but Ferrari aimed to explore this expanding avenue.
He stated, “This initiative will enable us to engage with individuals who may not be our traditional clientele but have the means to afford a Ferrari.”
Cryptocurrency Payments in Europe
The Italian company, which achieved sales of 13,200 cars in 2022, with prices ranging from over 200,000 euros ($211,000) to as high as 2 million euros, intends to expand its cryptocurrency payment program to Europe by the first quarter of the upcoming year, and subsequently to other regions where cryptocurrency transactions are legally permitted.
Europe, the Middle East, and Africa (EMEA) represent Ferrari’s most extensive market, contributing to 46% of the total car deliveries in the first half of the current year.
Galliera remarked, “We observe similar levels of interest in both the United States and Europe, with no substantial variations.”
Nations with limitations on cryptocurrency usage encompass China.
Ensuring Stability in Cryptocurrency Transactions
For the initial stage in the United States, Ferrari has partnered with one of the prominent cryptocurrency payment service providers, BitPay, enabling transactions in bitcoin, ether, and USDC, a major stablecoin. Ferrari may explore alternative payment processors for various global regions.
Galliera emphasized, “Our pricing will remain unaffected, without any additional fees or surcharges when utilizing cryptocurrencies for payment.”
BitPay will promptly convert cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers, providing them with protection against the volatility in cryptocurrency prices.
Galliera expressed, “One of our primary objectives was to shield both our dealers and ourselves from the direct handling of cryptocurrencies and the inherent fluctuations.”
In its role as the payment processor, BitPay will ensure that the virtual currencies originate from legitimate sources, preventing their use for illicit purposes such as money laundering or tax evasion.
Ferrari’s Chief Marketing and Commercial Officer indicated that the majority of its U.S. dealers have either already enrolled in the program or are on the verge of doing so. Galliera expressed confidence that additional dealers will soon join the initiative.
Ferrari is now allowing customers to buy their high-end sports cars using cryptocurrencies like Bitcoin. This is in response to requests from customers who have invested in digital currencies. To make this work smoothly and ensure the environment isn’t harmed, Ferrari has partnered with a company called BitPay to handle the cryptocurrency transactions.
They want to make sure these transactions are stable and legitimate. This decision not only aligns with their commitment to environmental sustainability but also opens doors to engage with a broader range of customers.