- Ferrari is expanding its cryptocurrency payment option due to high-end clientele demand in the US and plans to introduce it in Europe.
- Blue-chip companies avoid cryptocurrencies due to volatility, regulations, and energy consumption.
- Ferrari partners with BitPay to convert crypto to fiat, protecting dealers from price fluctuations.
Ferrari has enabled cryptocurrency as a payment method for its high-end sports cars in the United States, and it plans to expand this initiative to Europe due to the expressed interest of its affluent clientele, as conveyed by the company’s marketing and commercial leader in a statement to Reuters.
The majority of blue-chip companies have avoided cryptocurrencies due to the volatile nature of Bitcoin and other tokens, rendering them unsuitable for transactions. Inconsistent regulations and high energy consumption have also hindered crypto’s adoption as a payment method. Tesla briefly accepted Bitcoin as payment in 2021. However, CEO Elon Musk suspended it due to environmental concerns.
According to Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, cryptocurrencies are actively reducing their environmental impact by implementing new software and increasing their reliance on renewable energy sources, as reported to Reuters. He added,
Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed.
Enrico Galliera, Ferrari Chief Marketing and Commercial Officer
Moreover, Ferrari stated that their decision to accept cryptocurrency payments was prompted by market demand and dealer input, as a substantial portion of their customer base has invested in cryptocurrencies. This includes both young investors who have built their wealth through cryptocurrencies and more traditional investors looking to diversify their portfolios.
During the first half of this year, Ferrari shipped more than 1,800 cars to its Americas region, which includes the U.S. Enrico Galliera did not specify the number of cars Ferrari expected to sell through cryptocurrency. He mentioned that the company’s order portfolio is strong, and fully booked well into 2025, and expressed the company’s desire to explore this growing market, noting, “This will help us connect with people who are not necessarily our clients but might be able to afford a Ferrari.”
Additionally, Ferrari has partnered with BitPay, a major cryptocurrency payment processor, for the initial stage of its cryptocurrency payment initiative in the United States. Through this collaboration, Ferrari will facilitate transactions in Bitcoin, ether, and USDC, which is one of the prominent stablecoins. In other regions, Ferrari may explore the use of different payment processors.
Enrico Galliera emphasized that when paying through cryptocurrencies, there will be no price changes, fees, or additional charges. BitPay will promptly convert cryptocurrency payments into conventional currency on behalf of Ferrari’s dealers, safeguarding them from the volatility of cryptocurrency values.
He further explained, “This was one of our main goals: to ensure that both our dealers and ourselves are not directly exposed to handling cryptocurrencies and are insulated from their significant price fluctuations.”
As the payment processor, BitPay will verify the legitimacy of the virtual currency sources, ensuring they are not associated with illicit activities, money laundering, or tax evasion.
Ferrari’s Chief Marketing and Commercial Officer stated that the majority of its U.S. dealers have either already enrolled in the program or are in the process of doing so.
