Ferrari to embrace crypto as payment for its vehicles in the United States

Ferrari, the luxury sports car manufacturer, has made a significant move by allowing its customers in the United States to use cryptocurrency to purchase their high-end vehicles. This initiative is set to expand to Europe due to demands from their wealthy clientele. While many well-established companies have hesitated to embrace cryptocurrencies, citing concerns about the volatility of tokens like Bitcoin and regulatory issues, Ferrari is stepping into this new territory, following in the footsteps of Tesla.

Ferrari remains committed to achieving carbon neutrality by 2030

Tesla had briefly accepted Bitcoin payments in 2021, but CEO Elon Musk suspended this option due to environmental concerns, primarily related to Bitcoin’s energy-intensive mining process. However Chief Marketing and Commercial Officer, Enrico Galliera, believes that cryptocurrencies have made efforts to reduce their carbon footprint by introducing new software and utilizing renewable energy sources. He emphasizes that Ferrari remains committed to achieving carbon neutrality by 2030 along its entire value chain.

Ferrari’s decision to accept cryptocurrency comes in response to requests from both the market and their dealers, as many of their clients have invested in cryptocurrencies. Galliera explained that some of these clients are young investors who have accumulated wealth through cryptocurrencies, while others are more traditional investors looking to diversify their portfolios.

It’s worth noting that while some cryptocurrencies, like Ethereum (the second-largest by market capitalization), have improved their energy efficiency, Bitcoin still faces criticism for its energy-intensive mining process. However, Ferrari believes it’s crucial to adapt to the changing landscape and cater to potential customers in the crypto space.

Ferrari has already shipped more than 1,800 cars to the Americas region, which includes the United States, in the first half of the year. Although Galliera did not specify how many cars expects to sell through cryptocurrency, he mentioned that their order portfolio is strong and fully booked until 2025. Nevertheless, the company is keen to explore this expanding market further, reaching potential customers who may not have considered purchasing a Ferrari.

Ferrari’s cryptocurrency payment processing will be facilitated by BitPay, one of the largest cryptocurrency payment processors. This partnership will allow transactions in Bitcoin, Ethereum, and USDC, a stablecoin. Importantly, Ferrari assures that using cryptocurrency will not result in changes to the car prices, additional fees, or surcharges. BitPay will handle the conversion of cryptocurrency payments into traditional currency, protecting both dealers and the company itself from the fluctuations in cryptocurrency values.

Another key aspect of BitPay’s role is ensuring that the cryptocurrency funds used for transactions come from legitimate sources and are not associated with criminal activity, money laundering, or tax evasion. This is crucial for maintaining the integrity of these transactions.

The majority of Ferrari’s U.S. dealers have already signed up or are in the process of agreeing to the cryptocurrency payment scheme. Galliera is confident that more dealers will join this initiative in the near future. Ferrari’s plans extend beyond the United States and Europe, with the company intending to expand its cryptocurrency payment scheme to other regions where cryptocurrencies are legally accepted.

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