Ferrari will accept cryptocurrencies as payment for its cars in the US By Reuters

By Giulio Piovaccari

MILAN (Reuters) – Ferrari (NYSE ) has started accepting cryptocurrency payments for its luxury sports cars in the United States and will extend the scheme to Europe following requests from its wealthy customers, its commercial and marketing chief told Reuters. .

The vast majority of blue-chip companies have stayed away from cryptocurrencies, as the volatility of bitcoin and other tokens makes them impractical for trading. Irregular regulation and high energy use have also prevented the spread of cryptocurrencies as a means of payment.

These include electric car maker Tesla (NASDAQ:), which in 2021 began accepting payments in bitcoin, the largest cryptocurrency, before CEO Elon Musk suspended it due to environmental concerns.

Ferrari chief commercial and marketing officer Enrico Galliera told Reuters that cryptocurrencies had made efforts to reduce their carbon footprint by introducing new software and increasing the use of renewable sources.

“Our goal of achieving carbon neutrality by 2030 across our entire value chain is absolutely confirmed,” he said in an interview.

Ferrari said the decision came in response to requests from the market and distributors, as many of its clients have invested in cryptocurrencies.

“Some are young investors who have built their fortunes around cryptocurrencies,” he said. “Others are more traditional investors who want to diversify their portfolios.”

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

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

Galliera did not say how many cars Ferrari expected to sell through cryptocurrency. He said the company’s order book was strong and fully booked through 2025, but the company wanted to test this expanding universe.

“This will help us connect with people who are not necessarily our customers but who could afford a Ferrari,” he said.

The Italian company, which sold 13,200 cars in 2022, with prices from more than 200,000 euros ($211,000) to 2 million euros, plans to extend the 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 its total car shipments in the first half of this year.

“The interest is the same in the United States and Europe, we don’t see big differences,” said Galliera.

Countries where cryptocurrencies are restricted include China.

Ferrari has turned to one of the largest cryptocurrency payment processors, BitPay, for the initial phase in the US, and will allow transactions in bitcoin, ether and USDC, one of the largest stablecoins. Ferrari could use other payment processors in different regions.

“Prices will not change, there will be no fees or surcharges if you pay with cryptocurrencies,” Galliera said.

Bitpay will immediately convert cryptocurrency payments into traditional currency on behalf of Ferrari dealers, so they are protected from price swings.

“This was one of our main objectives: to prevent both our distributors and us from directly dealing with cryptocurrencies and protecting ourselves from their wide fluctuations,” Galliera said.

As a payment processor, BitPay will ensure that virtual currencies come from legitimate sources and are not derived from criminal activities or used to launder the proceeds of crime or evade taxes.

Ferrari’s sales and marketing chief said most of its American dealers have already signed up to the plan, or are about to accept it.

“I’m sure others will join soon,” Galliera said.

(1 dollar = 0.9495 euros)