Following requests from its affluent customers, Ferrari has begun accepting cryptocurrency payments for its high-end sports vehicles in the U.S. and will expand the program to Europe, according to its marketing and commercial chief, who spoke to Reuters.
Since bitcoin and other cryptocurrencies are too volatile for use in trade, the vast majority of blue-chip firms have shied away from them. The use of cryptocurrencies as a form of payment has also been hampered by patchy regulation and excessive energy consumption.
One of them is electric vehicle manufacturer Tesla, which started to take bitcoin payments in 2021 before CEO Elon Musk stopped it due to environmental concerns.
Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, told Reuters that the company had made efforts to lower its carbon footprint by introducing new technologies and using more renewable energy sources.
“Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed,” he stated in a recent interview.
As many of its clients have invested in cryptocurrencies, Ferrari claimed that the decision was made in response to requests from the market and dealers.
“Some are young investors who have built their fortunes around cryptocurrencies,” he stated. “Some others are more traditional investors, who want to diversify their portfolios.”
Bitcoin continues to get criticism for its energy-intensive mining, even if some cryptocurrencies, like the second-largest, ether, have improved their energy efficiency.
In the first half of this year, Ferrari shipped more than 1,800 vehicles to its Americas region, which includes the United States.
Galliera omitted to mention how many automobiles Ferrari anticipated selling using cryptocurrency. He claimed that even though the company’s order pipeline was robust and fully committed through 2025, it still wanted to explore this burgeoning market.
“This will help us connect to people who are not necessarily our clients but might afford a Ferrari,” he stated.
The Italian firm intends to expand the cryptocurrency program to Europe by the first quarter of next year and eventually to other places where cryptocurrency is accepted legally. In 2022, the company sold 13,200 automobiles, with prices starting at over 200,000 euros ($211,000) and going as high as 2 million euros.
Ferrari’s largest market, accounting for 46% of its total vehicle exports in the first half of this year, is Europe, the Middle East, and Africa.
“Interest is the same in the U.S. and Europe, we don’t see huge differences,” said Galliera.
China is one of the nations with cryptocurrency restrictions.
For the initial phase in the United States, Ferrari has chosen BitPay, one of the major cryptocurrency payment processors, and will permit transactions in bitcoin, ether, and USDC, one of the biggest so-called stablecoins. Ferrari may utilise different payment processors in various locations.
“Prices will not change, no fees, no surcharges if you pay through cryptocurrencies,” Galliera stated.
For the benefit of Ferrari’s dealers, Bitpay will instantly convert cryptocurrency payments into fiat money, shielding them from market 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 stated.
As the payment processor, BitPay will make sure that the virtual currencies are not generated via illegal activity, are not intended to be used to dodge taxes or to launder the proceeds of crime.
The bulk of Ferrari’s American dealers have already agreed to the plan, according to the company’s marketing and commercial boss, or are set to do so.
I have no doubt that more people will join shortly, Galliera stated.