Ferrari Will Accept Crypto Payments

Due to increased customer demand and requests from its dealers, Ferrari has decided to accept cryptocurrency payments for its luxury sports cars in the United States, with plans to extend this payment option to Europe.

Enrico Galliera, Ferrari's chief marketing and commercial officer, confirmed the company's move to embrace cryptocurrencies, citing a growing market demand and interest from various clients, including digitally savvy young investors.

The luxury automaker intends to explore this expanding market and reach potential customers outside its traditional demographic. It aims to introduce cryptocurrency payments in Europe by the first quarter of 2024 and gradually expand to other regions known for their cryptocurrency-friendly environments.

During its initial phase of accepting cryptocurrency payments in the United States, Ferrari has partnered with the prominent cryptocurrency payment processor, BitPay. This partnership allows transactions to be conducted using Bitcoin (BTC), Ether (ETH), and USD Coin (USDC).

Importantly, Ferrari's Chief Marketing and Commercial Officer, Enrico Galliera, emphasized that there would be no additional fees or surcharges for cryptocurrency transactions. BitPay will be responsible for swiftly converting cryptocurrency payments into conventional fiat currency for Ferrari's dealers, mitigating any potential exposure to cryptocurrency price fluctuations.

Additionally, BitPay will perform due diligence on the digital currency to ensure its legitimacy and compliance with anti-illegal activity, anti-money laundering, and tax regulations.

Unlike many other large corporations that have been cautious about embracing cryptocurrencies due to their price volatility and transaction complexities, Ferrari has made a significant move to incorporate them into its payment options.

Notably, Tesla, an electric vehicle manufacturer, initially began accepting Bitcoin payments in 2021 but later suspended this payment method due to environmental concerns, as highlighted by CEO Elon Musk.

Tesla is re-thinking Bitcoin payments

Tesla's CEO, Elon Musk, has indicated that the electric car manufacturer will likely resume accepting Bitcoin as payment once it has completed a thorough assessment of the cryptocurrency's environmental footprint.

This announcement was made during Musk's participation in the B Word conference. Musk's comments reflect a broader concern regarding the environmental impact of Bitcoin mining, as its energy-intensive process often relies on fossil fuels.

Some Tesla investors and environmental advocates have raised concerns about the contradiction between Musk's environmentally conscious image and his promotion of cryptocurrencies.

Nevertheless, many cryptocurrency miners are actively seeking ways to transition to renewable energy sources to reduce their environmental footprint. Elon Musk emphasized that Tesla, with its mission to accelerate sustainable energy, must ensure proper diligence regarding Bitcoin's energy usage.

However, for now, Tesla only accepts Dogecoin payments.

Sources:

https://cointelegraph.com/news/ferrari-to-accept-crypto-payments-in-the-us

https://fortune.com/2023/10/16/cryptocurrency-ferrari-cars-elon-musk-tesla-bitcoin-btc-eth-usdc/

https://www.coindesk.com/business/2023/10/16/ferrari-to-start-accepting-crypto-payments-in-us-reuters/

https://www.reuters.com/business/autos-transportation/tesla-will-most-likely-restart-accepting-bitcoin-payments-says-musk-2021-07-21/