Ferrari Enters Cryptocurrency Arena: Luxury Car Maker Now Accepts Crypto Payments in the U.S., Expansion Planned for Europe
Ferrari, known for its iconic luxury sports cars, has taken a groundbreaking step by embracing cryptocurrency payments for its vehicles in the United States. Following requests from affluent clients, Ferrari intends to extend this payment option to Europe.
Traditionally, most blue-chip companies have been hesitant to engage with cryptocurrencies due to the volatility of tokens like Bitcoin, making them impractical for everyday commerce. Regulatory inconsistencies and the environmental impact of crypto mining have also deterred wider adoption.
Even Tesla, the prominent electric car manufacturer, briefly accepted Bitcoin payments in 2021 before discontinuing the practice over environmental concerns, as voiced by CEO Elon Musk.
Enrico Galliera, Chief Marketing and Commercial Officer at Ferrari, disclosed to Reuters that cryptocurrencies have demonstrated efforts to reduce their carbon footprint by implementing new software and adopting renewable energy sources. He emphasized that Ferrari remains committed to achieving carbon neutrality throughout its entire value chain by 2030.
Ferrari’s decision to embrace cryptocurrency payments arose from client and market demand, as many of their customers have invested significantly in the crypto space. These clients encompass both young, crypto-affluent investors and more conventional investors seeking portfolio diversification.
While some cryptocurrencies have taken steps to improve their energy efficiency, Bitcoin, the largest digital currency, still encounters criticism due to its energy-intensive mining process.
In the first half of this year, Ferrari shipped over 1,800 cars to the Americas region, including the United States. Galliera did not specify how many vehicles Ferrari anticipates selling through crypto payments. Despite the strong order backlog extending into 2025, the company aims to explore this expanding digital frontier to reach potential customers who can afford a Ferrari.
Ferrari has partnered with BitPay, one of the major cryptocurrency payment processors, for the initial phase of its crypto payment system in the U.S. Ferrari’s crypto payment system will facilitate transactions in Bitcoin, Ether, and USDC, a prominent stablecoin. No changes in pricing, fees, or surcharges are expected when customers use cryptocurrencies for payment.
BitPay will promptly convert cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers, safeguarding them from the cryptocurrency market’s price volatility. BitPay will also ensure the legitimacy of the virtual currencies, preventing any illicit or criminal activities associated with the funds.
Ferrari’s initiative has already received considerable interest from the majority of its U.S. dealers, who have either adopted or are in the process of joining this payment method. Galliera is optimistic that others will follow suit shortly. Ferrari plans to extend this cryptocurrency payment scheme to Europe by the first quarter of the coming year, with the potential to expand to other regions where cryptocurrency transactions are legally accepted. Ferrari’s largest region, Europe, the Middle East, and Africa (EMEA), accounted for 46% of its total car shipments in the first half of this year.
The interest in cryptocurrency payments for Ferrari vehicles appears consistent between the U.S. and Europe, as Galliera pointed out that there are no substantial differences in enthusiasm for this new payment method. However, it’s worth noting that some countries, like China, have imposed restrictions on cryptocurrency usage.
In embracing cryptocurrency payments, Ferrari joins a select group of luxury brands pushing the boundaries of the digital economy while maintaining its commitment to offering the pinnacle of excellence and innovation in the automotive world.