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Wen Lambo? US Residents Can Now Buy a Ferrari with Crypto; EU to Follow
- Customers in the U.S. will be able to buy a Ferrari with crypto, given sufficient funds.
- Tesla said it would follow suit if BTC uses 50% green energy, which it does.
- Ferrari will immediately convert crypto to FIAT to ensure price stability.
Customers in the United States are revving up their engines because Ferrari has just announced that it will accept cryptocurrency as payment for its luxury sports cars, with plans to extend this service to European markets. According to a report by Reuters, wealthy customers had requested the acceptance of crypto as a payment option.
Why Have Other Automakers Not Embraced Crypto?
Other companies, like Tesla, had previously accepted Bitcoin (BTC) for payments but later discontinued this practice. The aversion to crypto and Bitcoin appears to be primarily due to environmental concerns and inefficiencies related to payments.
Enrico Galliera, the Chief Marketing and Commercial Officer of Ferrari, stated that many cryptocurrencies are actively working to become more environmentally friendly by reducing energy consumption and transitioning to renewable energy sources.
He stated, “Our target to reach for carbon neutrality by 2030 along our whole value chain is absolutely confirmed.”
When Tesla stopped accepting Bitcoin as a payment method, its CEO Elon Musk announced the electric car maker would resume doing so when BTC miners used 50% clean energy sources. This threshold was surpassed earlier this year, as reported by Jamie Coutts, a Bloomberg analyst based in Sydney.
Ferrari Still Cautious of Price Swings
While Ferrari seems eager to implement crypto into its operations, Galliera explained that they have turned to BitPay for the initial rollout.
He noted that there would be no fees or surcharges when using Bitcoin, Ethereum (ETH), or USDC. It is expected that BitPay will convert crypto to fiat currency as soon as a payment is made to avoid price fluctuations.
Galliera explained, “This was one of our main goals: avoiding, both our dealers and us, to directly handle cryptocurrencies and being shielded from their wide fluctuations.”
Currently, Ferrari’s order books are full until 2025. However, that does not mean they are not considering expanding their market.
With prices ranging from €200,000 ($333,000) to 2 million Euros ($3.3 million), the interest in luxury cars is enormous in the EMEA (Europe, the Middle East, and Africa) region. While Ferrari shipped 1,800 cars to the Americas, EMEA accounts for 46% of global sales.
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Author
Aaron Feuerstein
Aaron Feuerstein is a freelance writer based in Melbourne. His focus is on decentralised finance and the regulatory space surrounding blockchain. He holds a Master's in Accounting. When he is not studying the latest legal case, he enjoys his time as a modest but eager hobby cook.
