Ferrari Accepts Payments in Cryptocurrencies for Its Products in the US and Europe

Ferrari has started accepting payments in the form of cryptocurrency for its luxury sports cars in the United States. (photo: twitter @ferrari)

JAKARTA - Ferrari has started accepting payments in the form of cryptocurrency for its luxury sports cars in the United States. The Italian manufacturer will also expand this scheme to Europe after receiving demand from their wealthy customers, said Ferrari's Head of Marketing and Commercial as quoted by Reuters.

Most large companies have avoided cryptocurrencies because the volatility of Bitcoin and other tokens makes them impractical for trading. Inconsistent regulations and high energy usage have also prevented the spread of cryptocurrencies as a means of payment.

This includes electric car maker Tesla, which in 2021 started accepting payments in Bitcoin, the largest cryptocurrency, before CEO Elon Musk stopped it due to environmental concerns.

Ferrari Marketing and Commercial Officer, Enrico Galliera, told Reuters that cryptocurrencies have been working to reduce their carbon footprint through the use of new software and more renewable energy sources.

"Our target of achieving carbon neutrality by 2030 across our value chain remains assured," he said in an interview.

Ferrari said this decision was taken in response to demand from the market and dealers as many of their clients have invested in cryptocurrencies.

"Some are young investors who have built their wealth around cryptocurrencies," he said. "Some others are more traditional investors, looking to diversify their portfolios."

While some cryptocurrencies, such as the second largest, ether, have improved their energy efficiency, bitcoin still faces criticism for its energy-intensive mining.

Ferrari delivered more than 1,800 cars to the Americas region, which includes the United States, in the first half of this year.

Galliera did not say how many cars Ferrari expects to sell via cryptocurrency. He said the company's order portfolio is strong and full through 2025, but the company wants to test this growing market.

"This will help us connect with people who are not necessarily our clients but might be able to afford a Ferrari," he said.

The Italian company, which sold 13,200 cars in 2022, with prices starting at just over 200,000 euros (IDR 3.3 billion) and going up to 2 million euros (IDR 33 billion), plans to expand its crypto scheme to Europe in the first quarter of next year and then to other regions where cryptocurrencies are legally accepted.

Europe, the Middle East, and Africa (EMEA) is Ferrari's largest region, accounting for 46% of the company's total car deliveries in the first half of this year. "The interest is the same in the US and Europe, we don't see a big difference," Galliera said. Countries where cryptocurrencies are restricted include China.

Ferrari has turned to one of the largest cryptocurrency payment processors, BitPay, for the initial stage in the US, and will allow transactions in bitcoin, ether, and USDC, one of the largest stablecoins.

"We will not change the price, there are no additional fees if you pay via cryptocurrency," Galliera said.

BitPay will soon convert cryptocurrency payments into traditional currency on behalf of Ferrari dealers, so they are protected from price fluctuations.

“This is one of our main goals: to avoid, both our dealers and us, having to directly deal with cryptocurrencies and protect against their large price fluctuations,” Galliera said.

As a payment processor, BitPay will ensure that virtual currency comes from legitimate sources and is not derived from criminal activities or used to launder money or evade taxes.

Ferrari's Chief Marketing and Commercial Officer said that the majority of Ferrari dealers in the US have already signed up to, or will soon agree to, the scheme. "I'm sure others will join soon," Galliera said.