Key Takeaways:
Italian supercar manufacturer Ferrari has announced it will begin accepting payments in cryptocurrencies for its cars from European customers by the end of the month. The carmaker is rolling out the scheme in the continent less than a year after adding it as an option in the US.
Ferrari Begins Accepting Crypto Payments In Europe
In a press release, Ferrari said the addition of crypto as a payment option is intended to support dealers “in better addressing the evolving needs of its clients”. The decision follows the positive reception of the payment system in America, which the company views as crucial to customer demand.
Ferrari has partnered with crypto payment firms to convert any payment made using cryptocurrencies into fiat currency on the spot. The carmaker said those solutions will facilitate its dealers in accepting payments without the need to manage the cryptocurrencies directly. Ferrari also noted that its payment solutions will allow for the verification of the source of the funds and protect transactions from price fluctuations related to exchange rates.
The Maranello-headquartered sports car manufacturer claims that most of its European dealers have already adopted or are in the process of implementing the crypto payment system.
It was last October that Ferrari began accepting crypto payments for its cars being sold through dealerships in the US. Customers can pay in Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC) for their Ferraris. The company does not store the digital assets as they are automatically converted into fiat during the transaction process.
Ferrari also plans to roll out the crypto payments feature to its international dealers in countries where digital assets are legally permitted. This is expected to happen by the end of 2024.
Crypto Payments Are Aimed At Young Investors Who Can Afford To Buy A Ferrari
The company’s Chief Marketing and Commercial Officier Enrico Galliera previously highlighted that the move was undertaken to reach out to “young investors” who have built their fortunes around cryptocurrencies. He added that it will help Ferrari connect to people who are not necessarily its clients “but might afford a Ferrari”.
Previously, Galliera stated that the adoption of crypto payments aligns with the company’s border commitment to reducing its carbon footprint, which includes the adoption of newly developed and efficient technologies and increased use of renewable energy sources.
Ferrari is following in the path of other automakers who have included crypto as a payment option, like its arch-rival Lamborghini, which began accepting cryptocurrencies in some of its US dealerships. Certain Nissan and BMW dealerships in the US and UK have also begun accepting payments in digital currencies.
Electric carmaker Tesla was among the most prominent companies to enable crypto payments when it started accepting Bitcoin in 2021, igniting a spark. However, the initiative was short-lived as last year the EV brand stopped payments in BTC, with CEO Elon Musk citing environmental concerns associated with Bitcoin mining and transactions that require massive amounts of fossil fuels.
Despite the concerns, Tesla continues to hold $640 million worth of Bitcoin, as per its Q2 2024 filings.
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