Ferrari Announces Acceptance of Cryptocurrency Payments for Cars in the US

Ferrari, the luxury sports car manufacturer listed on NYSE as RACE, has taken a significant step by accepting cryptocurrency payments for its high-end vehicles in the United States, with plans to expand the initiative to Europe. This move comes as a response to growing demand from its affluent customer base, according to the company’s Chief Marketing and Commercial Officer, Enrico Galliera.

Traditionally, most blue-chip companies have been hesitant to embrace cryptocurrencies due to the extreme price volatility of assets like Bitcoin. Additionally, concerns over inconsistent regulations and the substantial energy consumption associated with cryptocurrency mining have hindered widespread adoption.

One notable example is Tesla (NASDAQ:TSLA), which briefly accepted Bitcoin as a form of payment in 2021 before CEO Elon Musk suspended the practice due to environmental considerations.

Galliera stated to Reuters that cryptocurrencies have been making efforts to reduce their carbon footprint through the implementation of new software and a greater reliance on renewable energy sources. He emphasized that Ferrari remains committed to achieving carbon neutrality across its entire value chain by 2030.

The decision to accept cryptocurrency payments was driven by market demand and requests from both clients and dealers. Some of Ferrari’s customers are early investors in cryptocurrencies, while others are more traditional investors seeking to diversify their portfolios.

While certain cryptocurrencies, like Ethereum (ETH), have improved their energy efficiency, Bitcoin continues to face criticism for its energy-intensive mining process.

During the first half of the current year, Ferrari delivered over 1,800 cars to its Americas region, which encompasses the U.S. However, Galliera did not disclose how many cars the company expected to sell via cryptocurrency transactions.

He mentioned that Ferrari’s order backlog is robust, with orders fully booked into 2025. Nonetheless, the company is eager to explore this expanding avenue to connect with potential customers who may not have previously considered purchasing a Ferrari.

Initially, Ferrari is partnering with BitPay, a leading cryptocurrency payment processor, for the U.S. market. They will accept payments in Bitcoin, Ethereum, and USDC, a prominent stablecoin. The company plans to extend this crypto payment scheme to Europe by the first quarter of the following year, and subsequently to other regions where cryptocurrency is legally accepted.

Galliera emphasized that the pricing of Ferrari vehicles would remain unaffected by this change, with no additional fees or surcharges for cryptocurrency payments. BitPay will swiftly convert cryptocurrency payments into traditional currency on behalf of Ferrari’s dealers, safeguarding them from the volatility of digital assets.

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

According to Galliera, most of Ferrari’s U.S. dealers have already joined or are in the process of joining the crypto payment initiative, and he expressed confidence that others would follow suit.

Ferrari, known for its premium vehicles with prices ranging from over 200,000 euros to as high as 2 million euros, sold 13,200 cars in 2022. Europe, the Middle East, and Africa (EMEA) constitute the largest region for Ferrari, accounting for 46% of the company’s total car shipments in the first half of this year. Galliera noted that interest in cryptocurrency payments is consistent in both the U.S. and Europe, with no significant differences observed.

It’s worth mentioning that cryptocurrency acceptance varies by country, with certain nations, like China, imposing restrictions on the use of digital currencies.

As Ferrari takes this pioneering step in the luxury car industry, it marks a notable shift in the traditional approach to high-value transactions, and it will be closely watched by both the automotive and cryptocurrency industries.