Ferrari's marketing and commercial head said that in response to demands from well-off customers, the company has begun accepting cryptocurrency payments for its premium sports vehicles in the United States and plans to expand the program to Europe.
Due to their extreme volatility, crypto like Bitcoin and other tokens have been avoided by the great majority of publicly traded corporations. Patchy regulation and excessive energy use have also slowed crypto payment adoption.
Tesla, a manufacturer of electric cars, started accepting Bitcoin as payment in 2021 until CEO Elon Musk abruptly stopped the practice out of concern for the environment.
Addressing Client Demand Amid Environmental Worries
Enrico Galliera, Chief Marketing and Commercial Officer of Ferrari, told Reuters that the industry was working to lower its carbon footprint by developing new software and increasing the usage of renewable energy. In an interview, he said, "Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed."
Ferrari declared that they made this choice in response to market and dealer demand since many of their customers are crypto investors.
"Some are young investors who have built their fortunes around cryptocurrencies. Some others are more traditional investors who want to diversify their portfolios," Galliera added.
Bitcoin is still criticized for being mined with a lot of energy, but other cryptocurrencies like Ether have made energy efficiency improvements.
In the first half of 2023, Ferrari exported more than 1,800 automobiles to its Americas region, which includes the US.
According to CNBC, Galliera did not reveal the number of Ferraris the company was targeting for sale using cryptocurrency. He assured them the company's order portfolio was robust and completely booked until at least 2025. He said they still wanted to explore this growing market. "This will help us connect to people who are not necessarily our clients but might afford a Ferrari."
The Payment System and Expansion Plans
For the launch in the US, Ferrari has partnered with BitPay, a major cryptocurrency payment processor. It will accept bitcoin, ether, and USDC, a major stablecoin. In certain locations, Ferrari may utilize other payment processors.
If one pays with crypto, there will be no price increase, no additional fees, and no surcharges, Galliera assured.
Bitpay will promptly convert cryptocurrency payments into fiat cash on behalf of Ferrari's dealers, protecting them from price fluctuations. It will verify the virtual currency's legitimacy and ensure it was not gained via illegal means or is being used to launder money or avoid taxes.
The Italian automaker aims to expand its crypto payment system across Europe in the first quarter of 2024 and subsequently to other places where digital coins are recognized by law.
Ferrari's greatest market is Europe, the Middle East, and Africa (EMEA).
Meanwhile, China is among the countries that have put restrictions on cryptocurrency use.
