The vast majority of blue-chip companies have so far stayed away from cryptocurrencies because the volatility of Bitcoin and other tokens makes them impractical for trading. However, Ferrari is making it possible for its customers to pay for their new car with cryptocurrencies in the future.
• Ferrari is one of the first major automobile manufacturers to use cryptocurrencies as a means of payment
• The company justified its move into the crypto world with the demand of its predominantly wealthy customers
• Despite volatility and environmental concerns, Ferrari definitely wants to test the expanding universe
Payment via cryptocurrency upon customer request
Italian luxury sports car and Formula 1 car maker Ferrari has started accepting cryptocurrency payments for its vehicles. A head of marketing and trading confirmed this to the Reuters news agency. For the time being, this is only possible for customers in the USA. However, according to the Reuters report, Ferrari will expand the program to Europe, the Middle East and Africa (EMEA) – Ferrari’s largest region, accounting for 46 percent of total vehicle deliveries in the first half of this year – at the request of its wealthy customers. International expansion into other regions where crypto is legal and popular should follow. Ferrari’s marketing and commercial chief said the majority of U.S. dealers have already signed up to the program or are close to agreeing to the program.
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The decision was in response to requests from the market and traders, as many of its customers have invested in cryptocurrencies, Ferrari explained. Some are young investors who have built their wealth around cryptocurrencies, Ferrari’s marketing and trading managing director Enrico Galliera told Reuters. Others are more traditional investors who want to diversify their portfolios. He adds: “This will help us get in touch with people who are not necessarily our customers but could afford a Ferrari.”
Ferrari confident despite volatility and environmental concerns
The Italian company sold around 13,200 vehicles in 2022, with prices ranging from 211,000 US dollars to 2 million euros. According to the marketing and trading manager, the company’s order portfolio is strong and fully booked well into 2025. He did not reveal how many cars Ferrari expects to sell via crypto in the interview with Reuters, but the company definitely wants to test this expanding universe.
So far, the vast majority of blue-chip companies have stayed away from cryptocurrencies because the volatility of Bitcoin and other tokens makes them impractical for trading. In addition, patchy regulation and high energy consumption have also prevented the spread of cryptocurrencies as a means of payment. As t3n reported, the electric car maker Tesla, among others, began accepting payments in Bitcoin in 2021 before CEO Elon Musk this stopped due to environmental concerns. Industry giant Apple is also holding back due to concerns about the volatility of crypto payments. Nevertheless, Ferrari’s marketing and commercial director is confident that other companies will join soon, according to Reuters.
Galliera highlighted that Ferrari has made efforts to reduce its carbon footprint through the introduction of new software and greater use of renewable sources. “Our goal of achieving climate neutrality along our entire value chain by 2030 has been absolutely confirmed,” he explains in the interview.
Crypto payment processor Bitpay responsible for processing
For its initial phase in the US, Ferrari turned to crypto payment processor Bitpay to process transactions in popular currencies such as Bitcoin and Ethereum. Prices remained the same whether customers paid with cryptocurrencies or traditional currencies. According to Galliera, there are no fees or surcharges when customers pay with cryptocurrencies. Bitpay will immediately convert cryptocurrency payments into traditional currency on behalf of Ferrari traders to protect them from price fluctuations, the Reuters report said. As a payment processor, BitPay also ensures that the virtual currencies come from legitimate sources and are not the result of criminal activities or are used to launder the proceeds of crime or for tax evasion.
Editorial team finanzen.net
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