Ferrari will expand its digital asset payment system for luxury sports cars to its European dealer network at the end of this month. according to to Reuters.
This follows its initial launch in the United States last year, with the company planning to further expand the program to other dealers within its international network by the end of 2024, provided cryptocurrencies are legally accepted in those regions. While many blue chip companies have avoided crypto due to the perceived volatility of the tokens, Ferrari’s move was driven by the demands of its affluent clientele.
In October 2023, Ferrari began accepting digital asset payments in the United States, meeting growing interest from wealthy, younger investors who have amassed significant wealth through digital currencies. According to Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, this decision is in line with the company’s commitment to achieve carbon neutrality by 2030. Ferrari’s US launch of digital asset payments was supported by BitPay, a major crypto payment processor, which guarantees instant conversion of digital payments to digital assets. traditional currency, protecting dealers from price volatility and additional customer fees.
The success of the US initiative led to Ferrari’s announcement that it would expand its crypto payment system to Europe. As reported by Reuters, most of Ferrari’s European dealers have already implemented or are in the process of adopting the new payment system. This expansion reflects the increasing adoption of digital currencies within the luxury automotive market across regions, despite the challenges posed by regulatory and market volatility. Ferrari has not yet announced whether it will partner with different payment processors for its European operations and other regions.
Car companies that accept crypto payments
The broader automotive industry has seen a notable shift towards crypto acceptance for vehicle purchases. Tesla’s 2021 announcement to accept Bitcoin as payment for its electric vehicles marked a significant adoption of crypto by a major automaker. However, Tesla later suspended the program due to environmental concerns related to Bitcoin mining. Following Tesla, other luxury brands have also done so embraced digital resources.
Classic Recreations, known for rebuilding and upgrading vintage Ford Mustangs, became one of the first custom car builders to accept cryptocurrencies. In Canada, Ontario-based SASS Auto Group accepts Bitcoin for purchases and offers financing plans that allow for crypto down payments. Platforms such as CryptoExchange facilitate crypto transactions for multiple brands, including Bugatti, Ferrari, Hummer, Bentley and Aston Martin, and act as a crypto exchange, escrow service and product marketplace.
Companies like Ferrari claim to limit crypto’s volatility risk by partnering with crypto payment processors like BitPay, which quickly convert crypto payments into traditional currencies. This approach reduces the time dealers hold capital, allowing them to receive fiat money within 24 hours of a sale, compared to the conventional waiting period of 30 days or longer.
The integration of crypto into the automotive market offers several advantages. For dealers, it significantly reduces the time capital is held, while for consumers, it provides enhanced security and privacy through blockchain technology.
In the future, it is more likely that more automakers and dealers will explore crypto payment options, transforming the automotive trading industry and providing new opportunities for retailers and consumers alike. However, the industry will have to cope with challenges such as regulatory compliance and market volatility as cryptocurrencies are further integrated into its payment systems.