In a groundbreaking move, luxury sports car manufacturer Ferrari has announced its decision to accept cryptocurrency as a form of payment for its vehicles in the United States, with plans to extend this payment option to Europe in the near future.
The development was confirmed by Ferrari’s Chief Marketing and Commercial Officer Enrico Galliera in an interview with Reuters and follows what he termed as a response to increasing demand from the company’s affluent clientele, who have shown a keen interest in using cryptocurrencies.
“Some are young investors who have built their fortunes around cryptocurrencies. <…> Some others are more traditional investors who want to diversify their portfolios”, Galliera said.
According to Galliera, the automaker’s decision to accept cryptocurrencies is also part of the company’s goal to reach carbon neutrality across its entire value chain by 2030.
Ferrari has partnered with BitPay to process the payment, which will instantly convert cryptocurrency payments into traditional currency on behalf of the company’s dealers, effectively shielding them from fluctuations in cryptocurrency prices.
Moreover, BitPay will ensure that the digital currencies used for transactions originate from legitimate sources, preventing the possibility of illicit activities or tax evasion.
Plans to expand crypto payments
The Italian automaker plans to extend the cryptocurrency payment scheme to Europe by the first quarter of next year. It intends to explore other regions where cryptocurrency payments are legally accepted.
Notably, Ferrari has shipped over 1,800 cars to its Americas region, which includes the United States, in the first half of this year. While Ferrari’s order portfolio is robust and booked into 2025, the company sees cryptocurrency acceptance as an opportunity to connect with a broader audience. Currently, the company has not disclosed the number of vehicles that will be sold via crypto.
It is worth noting that, traditionally, many blue-chip companies have hesitated to embrace cryptocurrencies due to the considerable volatility associated with digital assets such as Bitcoin (BTC) and the complexities of using them for everyday commerce.
At the same time, many companies face concerns over patchy regulations, and the high energy consumption of cryptocurrency mining has also played a role in limiting their adoption by mainstream companies. For instance, American electric vehicle manufacturer Tesla (NASDAQ: TSLA) eventually accepted Bitcoin but abandoned the payment model due to environmental concerns.