Ferrari is opening up to crypto-currencies, now allowing payment in Bitcoin and other digital currencies for its luxury cars in the USA. The move comes in response to growing demand from high-net-worth customers, with expansion planned in Europe soon.
A major step for the automotive industry. Ferrari has started accepting payments through certain cryptocurrencies, including Bitcoin, for its luxury sports cars in the United States, as announced by Enrico Galliera, the brand’s Chief Marketing and Commercial Officer, over the weekend. The luxury car manufacturer also plans to expand this system to Europe in response to demands from its affluent customers.
Most major companies have shied away from adopting cryptocurrencies due to the high volatility of Bitcoin and other tokens, making them impractical for commercial transactions. Additionally, uneven regulations and high energy consumption have hindered the adoption of cryptocurrencies as a means of payment.
However, in 2021, Tesla, the electric car manufacturer, made headlines by accepting Bitcoin payments, the leading cryptocurrency, before its CEO Elon Musk discontinued this option due to environmental concerns. But Enrico Galliera emphasized that cryptocurrencies have taken steps to reduce their carbon footprint through the introduction of new software and increased use of renewable energy sources.
“Our goal of achieving carbon neutrality by 2030 across our entire value chain is absolutely confirmed,” he stated in an interview.
The prancing horse brand stated that the decision was made in response to market and dealer requirements, as many customers have invested in cryptocurrencies. “Some are young investors who have built their wealth around cryptocurrencies. Others are more traditional investors looking to diversify their portfolios.”
Criticism of the Payment Method
While some cryptocurrencies, such as Ether, the second-largest, have improved their energy efficiency, Bitcoin remains criticized for its highly energy-intensive mining. As a result, countries like China have imposed restrictions on cryptocurrencies.
Ferrari has partnered with one of the largest cryptocurrency payment service providers, BitPay, for the initial phase of its launch in the United States. Transactions in Bitcoin, Ether, and USDC, one of the leading and most stable cryptocurrencies, will be allowed. Ferrari also plans to use other payment service providers in different regions.
“The prices will not change; there will be no fees, no surcharge if you pay in cryptocurrencies,” Mr. Galliera stated.
BitPay will instantly convert cryptocurrency payments into traditional currency on behalf of Ferrari dealers, ensuring their protection against price fluctuations.
“This was one of our main objectives: to avoid dealing directly with cryptocurrencies, both for our dealers and ourselves, and to be shielded from their significant fluctuations,” Mr. Galliera said.
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