Ferrari drives into Europe with crypto payments, as industry embraces digital assets
Ferrari will extend its digital assets payment scheme for luxury sports cars to its European dealer network at the end of this month, according to Reuters.
This follows its initial launch in the United States last year, with the company planning to further expand the scheme 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 perceived token volatility, Ferraris move was driven by demands from its affluent clientele.
In October 2023, Ferrari began accepting digital asset payments in the United States, addressing the growing interest from wealthy, younger investors who have accumulated significant wealth through digital currencies. Per Ferraris Chief Marketing and Commercial Officer, Enrico Galliera, this decision aligns with the companys commitment to achieving carbon neutrality by 2030. Ferraris US launch of digital asset payments was supported by BitPay, a major crypto payment processor, ensuring immediate conversion of digital payments to traditional currency, thus protecting dealers from price volatility and additional client fees.
The success of the US initiative led to Ferraris announcement that it would extend its crypto payment system to Europe. As reported by Reuters, most of Ferraris European dealers have already adopted or are in the process of adopting the new payment system. This expansion reflects the increasing acceptance of digital currencies within the luxury automotive market across different regions despite the challenges posed by regulatory and market volatility. Ferrari has not yet disclosed if it will collaborate with varying payment processors for its European operations and other regions.
Car companies accepting crypto payments
The broader automotive industry has seen a notable shift towards crypto acceptance for vehicle purchases. Teslas announcement in 2021 to accept Bitcoin as payment for its electric vehicles marked a significant endorsement of crypto by a major automaker. However, Tesla later suspended the program due to environmental concerns related to Bitcoin mining. Following Teslas lead, other luxury brands have also embraced digital assets.
Classic Recreations, known for rebuilding and upgrading vintage Ford Mustangs, became one of the first custom car builders to accept cryptocurrencies. In Canada, SASS Auto Group in Ontario accepts Bitcoin for purchases and offers financing plans allowing crypto down payments. Platforms like CryptoExchange facilitate crypto transactions for multiple brands, including Bugatti, Ferrari, Hummer, Bentley, and Aston Martin, acting as a crypto exchange, escrow service, and product marketplace.
Companies like Ferrari claim to mitigate cryptos volatility risk by partnering with crypto payment processors such as BitPay, which swiftly convert crypto payments into traditional currency. This approach reduces dealers capital hold time, enabling them to receive fiat funds within 24 hours of a sale, compared to the conventional 30-day or longer wait.
The integration of crypto into the automotive market offers several advantages. For dealers, it significantly reduces the capital hold time, while for consumers, it provides enhanced security and privacy through blockchain technology.
In the future, its more likely that additional automakers and dealerships will explore crypto payment options, transforming the automotive trading industry and offering new opportunities for both retailers and consumers. However, the industry will need to navigate challenges such as regulatory compliance and market volatility as it further integrates crypto into its payment systems.
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Text source: CryptoSlate
