Ferrari has started the process of accepting crypto as a means of payment for its high-end sports cars in the United States.
According to a CNBC article published earlier today, Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, revealed in a Reuters interview that this move is in response to both market and dealer demands, as a significant number of Ferrari’s clients are invested in digital currencies.
The majority of large corporations have been cautious about integrating cryptocurrencies into their payment systems. CNBC says that this hesitancy is due to the volatile nature of digital currencies like Bitcoin, as well as regulatory uncertainties and the high energy consumption often associated with them. Tesla, for instance, had briefly accepted Bitcoin in 2021 but later reversed the decision, citing environmental issues.
Galliera informed Reuters that the cryptocurrency sector has made progress in reducing its environmental impact. He also reiterated Ferrari’s ongoing commitment to achieve carbon neutrality across its entire operational chain by 2030.
Ferrari’s choice to accept digital currencies was apparently influenced by its diverse clientele. This includes young investors with accumulated wealth in cryptocurrencies and more traditional investors seeking to diversify their investment portfolios. Ferrari has a strong order book, with reservations extending into 2025, as per CNBC. The company dispatched over 1,800 vehicles to the Americas, including the U.S., in the first half of this year. While Galliera did not disclose the expected number of cars to be sold via cryptocurrency, he indicated that this new payment method would help Ferrari reach a broader audience of potential buyers.
Ferrari reportedly aims to extend its cryptocurrency payment options to Europe in the first quarter of the upcoming year. CNBC goes on to mention that Europe, the Middle East, and Africa (EMEA) constitute Ferrari’s largest market, responsible for 46% of its total car shipments in the first half of this year. Galliera noted that the level of interest in cryptocurrency payments is similar in both the U.S. and Europe. In countries like China, where cryptocurrencies face restrictions, Ferrari’s new payment method could encounter limitations, as noted by CNBC.
For its U.S. operations, Ferrari has teamed up with BitPay, a leading cryptocurrency payment processor. BitPay will facilitate transactions in Bitcoin, Ether, and USDC, converting these digital currencies immediately into fiat (traditional) currency. This strategy aims to shield Ferrari’s dealers from the volatility often associated with cryptocurrencies. Galliera assured that there would be no extra fees or surcharges for crypto payments, and prices would remain unchanged. BitPay will also ensure that the virtual currencies come from legitimate sources and are not associated with criminal activities.
A majority of Ferrari’s U.S. dealers have already consented to this new payment system, and Galliera is optimistic that more are about to agree.
Featured Image via Midjourney
