Luxury carmaker Ferrari announced today it will extend its cryptocurrency payment system to its European dealer network by the end of July. This move follows a successful launch in the United States last year, catering to a growing demand for alternative payment options among its clientele.
The iconic Italian brand, known for its high-performance vehicles and affluent customer base, began accepting cryptocurrency payments in the US in October 2023. This initiative, facilitated by a partnership with BitPay, a leading crypto payment processor, allowed customers to purchase Ferraris using Bitcoin (BTC), Ethereum (ETH), and USD Coin (USDC), a stablecoin pegged to the US dollar.
The European expansion signifies Ferrari’s confidence in the growing acceptance of cryptocurrencies. While the vast majority of major corporations remain hesitant due to the volatility of crypto assets, Ferrari seems to be embracing this evolving financial landscape. According to a company statement, “The entry into the European market follows the successful launch of this alternative payment system in the United States less than a year ago, to support dealers in better addressing the evolving needs of its clients.”
The statement further highlights that most European Ferrari dealers have already adopted, or are in the process of adopting, the new payment system. This suggests a strong internal support for the initiative within the Ferrari network.
However, the path for cryptocurrencies as a mainstream means of payment remains bumpy. Patchy regulations across different countries and the high energy consumption associated with some cryptocurrencies like Bitcoin pose significant hurdles. China, for example, has placed strict restrictions on crypto transactions.
To address these concerns and protect its dealers from price fluctuations, Ferrari, in partnership with BitPay, ensures that all crypto payments are immediately converted into traditional currencies. This eliminates the risk of exposure to volatile crypto markets for dealerships while still offering customers the convenience of using their digital assets.
While Ferrari did not disclose details about potential partnerships with other payment processors for its European and future international expansion, this move positions the brand as a pioneer in the luxury car sector when it comes to embracing cryptocurrency. It will be interesting to see how this initiative unfolds and whether other high-end car manufacturers follow suit.
