Responding to robust customer demand, Ferrari (RACE.MI) is boldly stepping into the realm of cryptocurrency payments for its premium sports cars in the United States, with plans to expand this offering to Europe. This pioneering move differentiates Ferrari from many other major organizations that have remained cautious about embracing cryptocurrencies due to their volatility and regulatory complexities. The endeavor is led by Ferrari’s Chief Marketing and Commercial Officer.
This strategic decision follows in the wake of Tesla’s (TSLA.O) brief flirtation with Bitcoin as a payment method in 2021, a move that was subsequently suspended by CEO Elon Musk due to environmental concerns.
Ferrari’s Chief Marketing Officer, Enrico Galliera, highlighted the cryptocurrency industry’s endeavors to reduce its carbon footprint through advanced technologies and an increased reliance on renewable energy sources. This commitment aligns with Ferrari’s ambitious target of achieving carbon neutrality across its entire value chain by 2030.
The adoption of cryptocurrency payments by Ferrari is significantly driven by customer requests, stemming from a diverse range of investors, including traditional investors seeking portfolio diversification and those who have amassed fortunes through cryptocurrencies.
Despite progress made by some cryptocurrencies, such as Ethereum, Bitcoin continues to face criticism for its resource-intensive mining process.
Ferrari dispatched more than 1,800 vehicles to the Americas in the first half of the year, with the United States accounting for a substantial portion of this market. Enrico Galliera did not specify the number of vehicles Ferrari expects to sell using Bitcoin, but he underscored the company’s robust order backlog, extending well beyond 2025. Ferrari perceives this shift to cryptocurrency payments as an opportunity to broaden its customer base.
Ferrari’s vehicle prices start at over 200,000 euros and can reach up to 2 million euros. Having sold 13,200 automobiles in 2022, the company now aspires to introduce cryptocurrency payment options in Europe by the first quarter of 2023, with future expansion into regions where cryptocurrencies are recognized as legitimate payment methods.
In the first half of the year, 46% of Ferrari’s total vehicle exports were destined for the Europe, Middle East, and Africa (EMEA) region. According to Enrico Galliera, there has been no notable discrepancy in the interest in cryptocurrency payments between the U.S. and Europe.
It is vital to acknowledge that some countries, including China, have imposed restrictions on cryptocurrency use. Ferrari has partnered with BitPay, one of the largest cryptocurrency payment processors, to facilitate this new initiative. BitPay will enable transactions in Bitcoin, Ethereum, and the popular stablecoin USDC. The immediate conversion of Bitcoin payments into fiat currency by BitPay will shield Ferrari’s dealers from price fluctuations.
Furthermore, BitPay will meticulously ensure the legitimacy of cryptocurrency funds to avoid any associations with illicit activities or tax evasion. Ferrari’s marketing and commercial leader noted that the majority of Ferrari’s U.S. dealers have already embraced this program, and he expressed optimism that more will follow suit.
This well-calculated move solidifies Ferrari’s position as a frontrunner in innovation within the luxury car market, offering consistent prices and no additional costs for Bitcoin transactions.