Ferrari: cryptocurrency will be accepted as payment in the USA – 10/16/2023 – Market

Ferrari has started selling cars through cryptocurrencies in the United States and will extend the scheme to Europe following customer requests. The information was given by the commercial director of the Italian automaker in an interview with Reuters.

The vast majority of blue-chip companies have been steering clear of cryptocurrencies as the volatility of bitcoin and other tokens makes them impractical for trading. Irregular regulation and high energy consumption have also prevented the spread of cryptocurrencies as a means of payment.

This includes electric car maker Tesla, which in 2021 began accepting payments in bitcoin, before the company’s chief executive, Elon Musk, announced a suspension of the modality citing environmental concerns.

Ferrari said the decision to accept digital currencies came in response to requests from the market and retailers, as many of the luxury brand’s customers invest in cryptocurrencies.

“Some are young investors who have built their fortunes around cryptocurrencies,” said Ferrari chief commercial officer Enrico Galliera. “Others are more traditional investors who want to diversify their portfolios.”

Galliera did not specify how many cars Ferrari expects to sell through cryptocurrencies. The executive stated that the company’s order book is strong and fully booked until 2025 and that the company wants to test this expanding universe.

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

The Italian company, which sold 13,200 cars in 2022, with prices ranging from 200 thousand euros to 2 million euros (R$1.06 million to R$10.65 million), plans to extend the possibility of paying in digital currencies to Europe until the first quarter of next year and then to other regions where cryptocurrencies are legally accepted. 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 may use other payment processors in different regions.

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

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

“That was one of our main goals: to prevent our dealers and us from dealing directly with cryptocurrencies and being protected from their large fluctuations,” Galliera said.

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

Ferrari’s commercial and marketing chief said most of its US dealers have already joined the scheme or are about to do so.