Europe will follow soon.
Cryptocurrencies have revolutionized the world of finance, offering digital alternatives to traditional currencies. While many initially saw cryptocurrencies as speculative assets, they are increasingly finding applications beyond investment. Companies worldwide are beginning to explore the potential of accepting cryptocurrency as payment. One such company, Ferrari, is making a notable entrance into this digital frontier.
Ferrari recently announced its decision to accept cryptocurrency as payment for its sports cars in the United States and plans to extend this innovative scheme to Europe. Enrico Galliera, the marketing and commercial chief of the Maranello-based brand, confirmed this development, emphasizing that it was a response to the demands of its affluent clientele.
"Some are young investors who have built their fortunes around cryptocurrencies," Galliera told Automotive News. "Some others are more traditional investors, who want to diversify their portfolios."
Ferrari's decision to accept cryptocurrency payments suggests that the automotive industry is slowly warming up to the idea of digital currency transactions. Enrico Galliera explained that cryptocurrencies have been taking steps to reduce their carbon footprint by introducing new software and relying more on renewable energy sources. He reassured that Ferrari's commitment to achieving carbon neutrality by 2030 throughout its value chain remains unwavering.
This move by the Italian supercar automaker represents a significant shift in the business landscape, as most blue-chip companies have traditionally been hesitant to embrace cryptocurrencies. The primary reason behind this hesitancy has been the extreme volatility of digital currencies like Bitcoin, which renders them impractical for everyday commerce. Additionally, the patchy regulatory environment and the high energy consumption associated with cryptocurrency mining have been obstacles to the widespread adoption of digital currencies for payments.
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It's important to note that not all cryptocurrencies are created equal when it comes to environmental concerns. While some, like Ethereum (ETH), have improved their energy efficiency, Bitcoin (BTC) continues to face criticism for its energy-intensive mining operations.
While the number of cars Ferrari expects to sell via cryptocurrency remains undisclosed, the company's order portfolio is reportedly strong and fully booked well into 2025, Automotive News reports.
Ferrari is not the only company to accept cryptocurrency payments. Overstock, an online retailer, has been accepting Bitcoin as payment for years, and Expedia, a well-known travel booking platform, allows customers to pay for hotel bookings using cryptocurrency. Moreover, BitPay, a payment processing service, has facilitated cryptocurrency transactions for numerous businesses. This company will be responsible for turning crypto payments into traditional currency on behalf of Ferrari.
"Prices will not change, no fees, no surcharges if you pay through cryptocurrencies," Galliera added. "This was one of our main goals: avoiding, both our dealers and us, to directly handle cryptocurrencies, and being shielded from their wide fluctuations.”
As a final note, it’s worth pointing out that China is among the countries that restrict crypto payments, together with Egypt, North Macedonia, Saudi Arabia, Tunisia, and others.