Ferrari has begun accepting cryptocurrency as payment for its luxury sports cars in the United States and plans to extend the program to Europe in response to requests from its affluent clientele, according to Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer.
Most major companies have shied away from cryptocurrencies due to the volatility of tokens like Bitcoin and regulatory uncertainties, along with concerns about energy consumption.
For instance, Tesla started accepting Bitcoin payments in 2021 but later halted the program due to environmental concerns raised by CEO Elon Musk.
However, Ferrari is embracing cryptocurrency and cites efforts to reduce its carbon footprint through new software and greater reliance on renewable energy. The company is committed to achieving carbon neutrality throughout its entire value chain by 2030.
Galliera stated that requests from the market and Ferrari’s dealers, many of whom have clients involved in cryptocurrencies, prompted the decision. Some of the customers investing in Ferrari cars using cryptocurrencies are young investors who have accumulated wealth through digital assets, while others are more traditional investors seeking to diversify their portfolios.
Ferrari will partner with BitPay, a major cryptocurrency payment processor, for the initial phase of its crypto payment acceptance in the US. The luxury carmaker will allow transactions in Bitcoin, Ether, and USDC, a stablecoin. This decision is expected to broaden Ferrari’s customer base and connect with potential clients who might not typically afford a Ferrari.
BitPay will handle cryptocurrency payments on behalf of Ferrari’s dealers and immediately convert them into traditional fiat currency to protect them from price fluctuations. This arrangement shields both the company and its dealers from the direct handling of cryptocurrencies and the associated volatility.
Ferrari’s order portfolio is robust and fully booked into 2025, and while Galliera did not specify the number of cars expected to be sold through cryptocurrency, the company views this expansion into the crypto world as an opportunity to connect with a broader audience.
Ferrari’s next step is to extend the cryptocurrency payment scheme to Europe in the first quarter of 2024 and explore opportunities in regions where cryptocurrencies are legally accepted. Europe, the Middle East, and Africa constitute Ferrari’s largest region, accounting for 46% of its car shipments in the first half of this year.