Ferrari will accept cryptocurrency as payment for its vehicles in the US, as per Reuters.
MILAN, Oct 14 (Reuters) – Ferrari (RACE.MI) has begun accepting cryptocurrency payments for its premium sports cars in the United States and will expand the scheme to Europe in response to requests from its rich clientele, according to the company’s marketing and commercial director.
The great majority of blue-chip corporations have avoided crypto because the volatility of bitcoin and other tokens makes them unsuitable for commerce. Inadequate regulation and high energy consumption have also hampered the growth of cryptocurrency as a payment method.
These include Tesla (TSLA.O), which began accepting bitcoin, the largest crypto coin, in 2021 until CEO Elon Musk discontinued it due to environmental concerns.
Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, told Reuters that cryptocurrencies have made efforts to lower their carbon impact by the adoption of new technologies and a greater usage of renewable sources.
“Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed,” he said in an interview.
Ferrari said the decision came in response to requests from the market and dealers, as many of its clients have invested in crypto.
“Some are young investors who have built their fortunes around cryptocurrencies,” he said. “Some others are more traditional investors, who want to diversify their portfolios.”
While several cryptocurrencies, such as the second-largest, ether, have improved their energy efficiency, bitcoin remains a source of contention due to its energy-intensive mining.
In the first half of this year, Ferrari shipped almost 1,800 automobiles to its Americas region, which includes the United States.
Galliera did not specify how many automobiles Ferrari expected to sell using cryptocurrency. He stated that the company’s order portfolio was strong and fully booked through 2025, but that the corporation wants to test the expanding universe.
“This will help us connect to people who are not necessarily our clients but might afford a Ferrari,”he said.
The Italian company, which sold 13,200 cars in 2022 at prices ranging from over 200,000 euros ($211,000) to 2 million euros, intends to expand the crypto program to Europe by the first quarter of next year, followed by other regions where crypto is legally accepted.
Ferrari’s main region is Europe, the Middle East, and Africa (EMEA), which accounted for 46% of total car exports in the first half of this year.
“Interest is the same in the U.S. and Europe, we don’t see huge differences,”Galliera said
Countries where cryptocurrencies are restricted include China.
Ferrari has turned to one of the biggest cryptocurrency payment processors, BitPay, for the initial phase in the U.S., and will allow transactions in bitcoin, ether, and USDC, one of the largest so-called stablecoins. Ferrari might use other payment processors in different regions.
“Prices will not change, no fees, no surcharges if you pay through cryptocurrencies,”Galliera said
Bitpay will promptly convert cryptocurrency payments into traditional cash on behalf of Ferrari’s dealers, shielding them from price fluctuations.
“This was one of our main goals: avoiding, both our dealers and us, to directly handle cryptocurrencies and being shielded from their wide fluctuations,”Galliera said
BitPay, as the payment processor, will ensure that the virtual currencies are sourced from genuine sources and are not used to launder criminal earnings or escape tax.
The bulk of Ferrari’s U.S. dealers have already agreed to the arrangement, according to the company’s marketing and commercial boss.