IMPORTANT POINTS:
- Ferrari has begun accepting cryptocurrency payments in the US, with plans to extend to Europe.
- This decision responds to market demand and a solid order book until 2025.
- Ferrari has partnered with BitPay to process payments and ensure stability and security in transactions.
Ferrari (RACE) has started accepting cryptocurrency payments for its luxury sports cars in the US. This news has taken the automotive world by storm. The brand plans to extend this scheme to Europe in response to requests from its wealthy clients, the head of marketing and merchandising shared with Reuters.
Cryptocurrencies in the business world
On the other hand, although cryptocurrencies have gained ground, the vast majority of established companies have stayed on the sidelines due to the volatility of currencies like Bitcoin. Concerns about regulation and high energy consumption have also been barriers to its adoption as a means of payment.
This includes Tesla (TSLA), which in 2021 began receiving payments in bitcoin, the largest cryptocurrency, until its CEO, Elon Musk, stopped the initiative due to environmental concerns.
In this context, Enrico Galliera, head of Marketing and Commercialization at Ferrari, pointed out that cryptocurrencies have made efforts to reduce their carbon footprint through the introduction of new software and greater use of renewable sources.
Furthermore, he added: “Our goal of achieving carbon neutrality by 2030 throughout our entire value chain is absolutely confirmed.” This statement took place during an interview in which he highlighted the importance of Ferrari’s environmental commitment.
Ferrari’s decision arose in response to requests from the market and its dealers. Galliera commented:
“Many of our clients have invested in crypto. “Some are young investors who made fortunes with cryptocurrencies, while others are more traditional investors looking to diversify their portfolios.”
However, it is important to note that although some cryptocurrencies, such as Ethereum (ETH), have improved their energy efficiency, Bitcoin (BTC) still faces criticism for its energy-intensive mining process.
Relevant data
In the first half of this year, Ferrari shipped more than 1,800 cars to its Americas region, which includes the United States. Although Galliera did not specify how many cars he hopes to sell through crypto, he emphasized that the company’s order book is strong and fully booked through 2025. However, they are eager to explore this expanding universe. Galliera added:
“This will help us connect with people who are not necessarily our customers but could afford a Ferrari.”
The Italian company sold 13,200 cars in 2022, with prices starting at more than 200,000 euros ($211,000) and going up to 2 million euros. Additionally, they have plans to extend the crypto scheme to Europe in the first quarter of next year and subsequently to other regions where cryptocurrencies are legally accepted.
For the initial phase in the United States, Ferrari has partnered with BitPay, one of the largest cryptocurrency payment processors. They will accept transactions in Bitcoin, Ether and USDC. Galliera assured:
“Prices will not change. There will be no additional charges if paying with cryptocurrencies.”
BitPay will immediately convert cryptocurrency payments into traditional currency on behalf of Ferrari dealers, protecting them from potential fluctuations.
“This was one of our main objectives: to prevent both our dealers and us from directly dealing with cryptocurrencies and being protected from their wide fluctuations.”
As a payment processor, BitPay will ensure that virtual currencies come from legitimate sources and are not derived from criminal activities or used to launder the proceeds of crime or evade taxes.
Ferrari’s head of marketing and commercialization indicated that the majority of its dealers in the United States have already signed up or are about to sign up for the scheme.
“I’m sure others will join soon,” Galliera said.
