Ferrari, the luxury sports car manufacturer, has begun accepting cryptocurrency as a form of payment for its cars in the United States. This decision was made in response to requests from its affluent clientele. The company’s marketing and commercial chief, Enrico Galliera, confirmed this development.
Corporate Stance on Cryptocurrency
Most blue-chip companies have avoided cryptocurrency due to its volatility and impracticality for commerce. Regulatory inconsistencies and high energy consumption have also hindered the adoption of cryptocurrency as a payment method. However, some companies, such as electric car maker Tesla, have experimented with accepting Bitcoin before discontinuing due to environmental concerns.
Despite the environmental concerns associated with cryptocurrencies, Ferrari remains committed to achieving carbon neutrality by 2030 across its entire value chain. Galliera stated that cryptocurrencies have made strides in reducing their carbon footprint through the introduction of new software and increased use of renewable energy sources.
The decision to accept cryptocurrency was driven by market demand and dealer requests. Many of Ferrari’s clients have invested in cryptocurrency. These include young investors who have amassed wealth through cryptocurrencies and traditional investors looking to diversify their portfolios.
Ferrari to accept crypto as payment for its cars
While some cryptocurrencies like Ether have improved their energy efficiency, Bitcoin continues to face criticism for its energy-intensive mining process.
In the first half of this year, Ferrari shipped over 1,800 cars to its Americas region, which includes the US. Galliera did not disclose how many cars Ferrari expects to sell through cryptocurrency but mentioned that the company’s order portfolio is strong and fully booked well into 2025.
Ferrari plans to extend its cryptocurrency scheme to Europe by the first quarter of next year and then to other regions where cryptocurrency is legally accepted. Europe, the Middle East, and Africa account for 46% of Ferrari’s total car shipments in the first half of this year.
Certain countries like China have restrictions on cryptocurrencies.
Ferrari has partnered with BitPay, one of the largest cryptocurrency payment processors, for its initial phase in the US. The company will accept Bitcoin, Ether, and USDC. BitPay will immediately convert cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers to protect them from price fluctuations.
BitPay will also ensure that virtual currencies come from legitimate sources and are not used for criminal activities or tax evasion.
The majority of Ferrari’s US dealers have already signed up or are about to agree to the scheme.