Italian luxury supercar manufacturer Ferrari will become the latest blue-chip car company to start accepting cryptocurrencies as payment. The move comes following requests from its customers and potential clients who are invested in the digital asset. The company’s chief marketing and commercial officer, Enrico Galliera, confirmed the decision in an interview with Reuters last week.
The scheme will first be introduced in the US and later extended to the European market. Galliera noted that the plan to accept cryptocurrencies is part of the supercar and racecar manufacturer’s efforts to reduce its own carbon footprint through the introduction of newer technology and widespread use of renewable resources for operations.
Ferrari targets to reach carbon neutrality across its whole supply chain by 2030.
Customers Can Buy Their Ferraris With Bitcoin And Ether
Ferrari’s decision was motivated by market demand and dealer requests. The automaker believes the crypto-focused initiative will help connect its brand with young and wealthy individuals who are not necessarily its clients but have built their fortunes around cryptocurrencies. Meanwhile, there are a few other customers who are interested in diversifying their portfolio to include crypto assets.
Ferrari customers will be able to buy their luxury prancing horses with Bitcoin (BTC), Ether (ETH), Circle USD (USDC), Tether (USDT), and other stablecoins. The payment processing will be done on BitPay in the US with other processors expected to take charge in different regions. The supercar manufacturer said that it does not plan to add any surcharges or additional fees for payments done with cryptocurrencies and the prices will remain the same regardless.
The company has shipped over 1,800 cars to North America, including the US, in the first of this year. However, sales in the region dropped by 17%, while shipments to Europe, the Middle East, and Africa (EMEA), its largest region accounting for 46% of total car sales in 2023, increased by 17%.
However, Ferrari has no plans to introduce crypto payments in Mainland China, Hong Kong, and Taiwan, another major market for the supercar manufacturer, as Beijing has completely restricted the use of cryptocurrencies.
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Bitpay Will Immediately Convert The Buyer’s Crypto Into Fiat To Avoid Any Price Fluctuation
Galliera said that one of the main goals of the company when it comes to crypto payments is to directly handle the transactions and shield customers from the volatile price fluctuations in the crypto market. To achieve this, Bitpay will immediately convert clients’ cryptocurrency payments into subsequent dollars on behalf of the Ferrari dealer.
Bitpay will also ensure that the digital currencies come from legitimate sources and are not proceeds of criminal activities or assets used to launder money or evade tax.
Ferrari said that almost all of its major US dealers have already signed up to the program, or are in the process of agreeing to the scheme. However, the company did not say how many cars it is expected to sell through crypto.
Crypto Scheme Will Be Extended To Europe And Other Regions In 2024
Anyways, Ferrari’s order portfolio is fully booked well into 2025. So any purchases using crypto will be for cars that will be delivered in two years’ time. The crypto purchase program, which has already begun in the US, will be extended to Europe by the first quarter of 2024, followed by other countries where crypto tokens are accepted as a legal form of payment.
Ferrari was founded by racecar driver Enzo Ferrari as a racing team in 1940. The company started producing its current line of road cars in 1947. The legendary Italian automaker is considered to be one of the best and most decorated teams in motorsports history with drivers and constructors titles in Formula One, 24 Hours of Le Mans, 24 Hours of Spa, 24 Hours of Daytona, 12 Hours of Sebring, and the World Sportscar Championship.