Ferrari, a renowned luxury sports car manufacturer, has recently decided to accept cryptocurrency as a valid payment method for its vehicles in the United States. In response to the demands of its affluent clientele, the company intends to extend this payment option to Europe as well. Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, shared this information during an interview.
Unlike many other blue-chip companies, Ferrari is embracing cryptocurrencies, despite the high volatility of bitcoin and other tokens that often render them unsuitable for commercial use. Inadequate regulation and substantial energy consumption have also hindered the widespread adoption of cryptocurrency as a viable payment method.
Elon Musk, the CEO of Tesla, who is a well-known manufacturer of electric vehicles, initially accepted bitcoin as a payment method in 2021 but later discontinued it due to environmental concerns.
Galliera mentioned that cryptocurrencies are actively working to reduce their carbon emissions by implementing new software and increasing their reliance on renewable energy sources. He also expressed Ferrari’s unwavering commitment to achieving carbon neutrality across its entire value chain by 2030.
Ferrari’s decision to accommodate cryptocurrency transactions is a direct response to market demands and requests from their dealers, considering the significant number of Ferrari clients who have invested in the cryptocurrency sector. Galliera noted that both young and traditional investors are looking to diversify their investment portfolios.
While some cryptocurrencies like ether have made strides in enhancing their energy efficiency, bitcoin continues to face scrutiny due to its energy-intensive mining process.
In the first half of this year, Ferrari delivered over 1,800 vehicles in the United States, showing the strong demand for their cars.
Galliera did not disclose the specific number of cars Ferrari expects to sell through cryptocurrency. However, he mentioned that the company’s order portfolio is robust and filled until 2025. The company intends to assess the potential of this expanding market, with a focus on connecting with individuals who have the financial means to purchase a Ferrari.
In 2022, Ferrari achieved sales figures of 13,200 cars, with prices ranging from over 200,000 euros ($211,000) to 2 million euros. The company has outlined its intentions to expand its cryptocurrency initiative to Europe in the first quarter of the upcoming year and subsequently to other regions where cryptocurrency is legally recognized.
The Europe, Middle East, and Africa (EMEA) region represent Ferrari’s most substantial market, comprising 46% of the company’s total car shipments during the initial half of the current year. Galliera mentioned that there are no significant differences in interest between the United States and Europe.
Notably, China is among the countries that have imposed restrictions on cryptocurrencies.
Ferrari has recently partnered with BitPay, a prominent cryptocurrency payment processor, to facilitate transactions in the United States. This collaboration marks the initial phase of their integration, enabling customers to conduct transactions using prominent cryptocurrencies such as bitcoin, ether, and USDC, which is recognized as one of the leading stablecoins. Ferrari may opt to utilize alternative payment processors in various geographic regions.
According to Galliera, there will be no alterations to the prices, and no additional fees or surcharges will be incurred when making payments through cryptocurrencies. BitPay will expeditiously convert cryptocurrency payments into conventional currency on behalf of Ferrari’s dealers, thereby safeguarding them against fluctuations in price. This approach allows both Ferrari and its dealers to avoid directly handling cryptocurrencies and mitigate the risks associated with their significant price fluctuations. BitPay, as the designated payment processor, will diligently verify the legitimacy of virtual currencies, ensuring they are not sourced from illicit activities, intended for money laundering, or aimed at evading tax obligations.
Galliera expressed optimism that additional individuals will soon join this cryptocurrency payment initiative. With the exchange rate between the US dollar and the euro set at 1 US dollar equals 0.9495 euros, this move by Ferrari marks a significant step in the luxury car market, making it more accessible to cryptocurrency enthusiasts and traditional investors alike.