- Most blue-chip companies avoid crypto due to its innate volatility
- New software has reduced crypto’s carbon footprint
Ferrari is now accepting payments in cryptocurrency for its luxury sports vehicles in the US. After requests from clients, it will extend the option to Europe, CNBC reports.
Crypto was unfeasible for commerce
Most blue-chip companies avoid crypto due to its innate volatility, making it unfeasible for commerce. High energy use and problematic regulation have hindered crypto from becoming a mainstream means of payment.
Tesla pioneered crypto as a payment method for vehicles. The leading electric carmaker started accepting Bitcoin in 2021, but CEO Elon Musk halted payments soon thereafter over environmental issues.
Many Ferrari clients have invested in digital assets
However, greater use of renewable energy sources and new software have reduced crypto’s carbon footprint according to Enrico Galliera, Ferrari’s Chief Marketing and Commercial Officer. He told Reuters in an interview that the company aims to become carbon-neutral by 2030.
The decision was made following high market demand. Many Ferrari owners have invested in crypto. Galliera says some clients have “built their fortunes around cryptocurrencies.”
Ferrari boasts strong order portfolio
Ferrari shipped almost 2,000 cars to the Americas in the first six months of 2023. Its CMO and CCO shared that the order portfolio was “strong,” with bookings extending well into 2025.
Ferrari sold 13,200 cars last year. The cheapest Ferrari costs $211,000, with prices going up well over $2 million. The company’s biggest region is Europe, the Middle East and Africa (EMEA), accounting for just under half of the total car shipments.
BitPay protects crypto from price swings
Ferrari partnered with BitPay for the US rollout. It will allow transactions in Bitcoin, ether and USDC. Bitpay will exchange crypto for fiat immediately to protect Ferrari’s dealers from market volatility. BitPay will also check the source of the crypto to ensure the assets are legitimate and not used for tax evasion or money laundering.
