Ferrari will start taking cryptocurrency as payment for its cars in the US

Web DeskOctober 15, 2023
Ferrari will start taking cryptocurrency as payment for its cars in the US

Ferrari has initiated the acceptance of cryptocurrency as payment for its high-end sports cars in the United States, with plans to expand this option to Europe, driven by the requests of affluent customers, according to the company’s Chief Marketing and Commercial Officer, as reported by Reuters.

Unlike many well-established companies, which have hesitated to embrace cryptocurrency due to the volatile nature of digital tokens like Bitcoin, as well as regulatory uncertainties and environmental concerns, Ferrari has chosen to accommodate the demand of its clientele who have invested in cryptocurrencies.

Ferrari’s move comes in response to market and dealer demands, with a customer base ranging from young investors who have gained wealth through cryptocurrencies to more conventional investors seeking diversification.

Also Read: The British Investor’s Million-Dollar Loss: The Downfall of the ‘King of Crypto

Ferrari aims to reach carbon neutrality throughout its value chain by 2030 and has noted that cryptocurrencies are making strides in reducing their carbon footprint by implementing new software and utilizing renewable energy sources.

While certain cryptocurrencies, including the second-largest, Ethereum (ether), have improved their energy efficiency, Bitcoin remains a subject of criticism for its energy-intensive mining process.

The exact number of cars Ferrari expects to sell via cryptocurrency was not disclosed, but the company’s order backlog is robust, extending into 2025. Ferrari sees this move as an opportunity to connect with potential buyers who may not have considered purchasing a Ferrari.

The company has partnered with BitPay, one of the major cryptocurrency payment processors, for the initial phase in the US, enabling transactions in Bitcoin, Ethereum, and USDC (a stablecoin). Ferrari plans to introduce the cryptocurrency payment option in Europe during the first quarter of the following year, and subsequently expand to regions where cryptocurrencies are legally accepted.

Notably, Ferrari ensures that prices for its cars will remain consistent when customers choose to pay with cryptocurrencies, without additional fees or surcharges. BitPay will facilitate the conversion of cryptocurrency payments into traditional currencies on behalf of Ferrari’s dealers, shielding them from the volatility of digital currencies.

As the payment processor, BitPay will also ensure that the cryptocurrency funds originate from legitimate sources and are not linked to criminal activities or intended for money laundering or tax evasion.

Ferrari’s Chief Marketing and Commercial Officer expressed confidence that the majority of the company’s US dealers have either already adopted the cryptocurrency payment option or are in the process of doing so, with the expectation that more will follow suit in the near future.

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