Ferrari Embraces Cryptocurrency Payments for Supercars

  Pixabay

In a pioneering move, Ferrari, the luxury sports car manufacturer, has decided to accept cryptocurrency as payment for its vehicles in the United States. The company has also indicated that this payment method will soon be available in Europe.

The decision was confirmed by Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer. In an interview with Reuters, Galliera explained that the move was in response to the growing demand from the company’s wealthy clientele, who have shown significant interest in using cryptocurrencies.

Galliera mentioned that the clientele includes both young investors who have built fortunes around cryptocurrencies and traditional investors looking to diversify their portfolios. Furthermore, Galliera stated that accepting cryptocurrencies aligns with the company’s goal of achieving carbon neutrality across its entire value chain by 2030.

Partnership with BitPay

To facilitate this new payment process, Ferrari has partnered with BitPay. This service will convert the cryptocurrency payments into traditional currency instantly on behalf of Ferrari’s dealers. This system aims to protect the dealers from the volatility of cryptocurrency prices.

In addition, BitPay will ensure that the digital currencies used in transactions come from legal sources, thereby mitigating the risk of illicit activities or tax evasion.

Expanding Cryptocurrency Payments

Ferrari plans to extend its cryptocurrency payment system to Europe in the first quarter of next year. The company also intends to examine other regions where cryptocurrency payments are legally accepted.

Ferrari has already shipped more than 1,800 cars to its Americas region, including the United States, in the first half of this year. While the company’s order portfolio is robust and booked until 2025, Ferrari views the acceptance of cryptocurrency as a chance to reach a wider audience.

The company, however, has not yet disclosed how many vehicles will be sold via cryptocurrency.

The Challenges of Cryptocurrency in Commerce

Despite Ferrari’s embrace of cryptocurrency, many blue-chip companies remain hesitant due to the considerable volatility and complexities associated with digital assets such as Bitcoin.

Other concerns include uncertain regulations and the high energy consumption of cryptocurrency mining, which has limited its adoption by mainstream companies. For example, Tesla initially accepted Bitcoin but later abandoned this payment method due to environmental concerns.