Ferrari is steering into the world of cryptocurrencies by allowing payments for its luxury sports cars in the United States, with plans to extend this to Europe by the first quarter of the next year.
Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer, told Reuters that this decision is a direct response to market and dealer requests. They’ve seen interest from a range of investors, from young crypto-savvy ones who’ve amassed fortunes in digital assets to more traditional investors looking to diversify.
In the first half of 2023, Ferrari delivered over 1,800 cars to the Americas, including the United States. Their 2022 sales figures reached 13,200 cars, with prices ranging from $211,000 USD to a soaring $2 million USD.
While Galliera didn’t specify how many cars they expect to sell via crypto, he noted that their order book is fully packed until 2025. Europe, the Middle East, and Africa are Ferrari’s largest market, comprising 46% of their total car shipments in H1 2023.
To start in the U.S., Ferrari has partnered with BitPay, a prominent cryptocurrency payment processor. Initially, customers can make payments using bitcoin, ether, and USDC (a stablecoin). BitPay will swiftly convert these crypto payments into traditional currency for Ferrari’s dealers, protecting them from price swings.
Price, according to Galliera, will remain consistent. There will be no fees or surcharges for cryptocurrency payments. Most of Ferrari’s U.S. dealers have already signed up or are expected to, signaling a significant shift in luxury car sales.
Ferrari’s primary aim is to minimize its direct handling of cryptocurrencies and protect itself from their high volatility. This approach is in contrast to companies that directly hold cryptocurrencies on their balance sheets.
While many well-established companies have hesitated to embrace cryptocurrencies due to their volatility and regulatory uncertainties, Ferrari is among a select few luxury brands entering the crypto sphere. Tesla briefly accepted bitcoin in 2021 before suspending it over environmental concerns.
Galliera emphasized that many cryptocurrencies are actively working to reduce their carbon footprint by adopting new software and renewable energy sources. Ferrari is dedicated to achieving carbon neutrality throughout its value chain by 2030.
The exact number of cars Ferrari expects to sell through cryptocurrencies remains undisclosed, but their robust order book suggests significant demand. By accepting crypto, Ferrari aims to connect with a broader audience, including those who might not have previously considered owning a Ferrari.
BitPay will also ensure that the digital currencies used for transactions originate from legitimate sources, adhering to stringent compliance measures to prevent their misuse for illegal activities or tax evasion.
Ferrari’s plan includes expanding the cryptocurrency payment option to Europe in the first quarter of the upcoming year and then to other regions where cryptocurrencies are legally accepted. This move reflects the growing acceptance and integration of digital currencies across various industries, including the high-end luxury market.
As Ferrari takes the cryptocurrency road, it symbolizes a shift in the traditional financial landscape. Digital assets are increasingly becoming a mainstream method for conducting high-value transactions.