Thursday, December 28, 2023

Americans Can Now Purchase Ferraris with Cryptocurrency, Europe to Follow Suit Soon

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Henrik Andersen

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Americans Can Now Purchase Ferraris with Cryptocurrency, Europe to Follow Suit Soon

Luxury carmaker Ferrari has initiated the acceptance of cryptocurrencies as a form of payment for its high-end sports cars. Customers in the United States can now utilize digital currencies for transactions, with plans to extend this service to European countries by early next year.

Enrico Galliera, Ferrari's Chief Commercial Officer, mentioned in an interview with Reuters that the company will accept various cryptocurrencies, including bitcoin, ether, and USDC—a digital coin directly pegged to the value of the dollar.

Galliera highlighted the demand from numerous customers and car dealers who wish to use cryptocurrencies as a payment method. "We're seeing interest, particularly from younger investors who have built their wealth with cryptocurrencies," stated Galliera.

"This move can help us establish connections with individuals who might not necessarily be our current customers but could afford a Ferrari," he added. Ferrari's car prices start at approximately 200,000 euros and can go up to 2 million euros.

Challenges and Widespread Crypto Rejection

Numerous major companies avoid embracing cryptocurrencies as a means of payment due to their volatile nature compared to more traditional currencies like the dollar and euro. The significant price fluctuations pose higher risks for ownership.

Bitcoin, the most commonly used cryptocurrency, also faces criticism due to its substantial energy consumption to sustain its underlying system. Tesla previously allowed bitcoin transactions in 2021 but ceased this payment method due to environmental concerns raised by CEO Elon Musk.

Galliera suggested that Ferrari's exposure to the risks associated with significant price swings in cryptocurrencies is limited. The company converts digital currency payments instantly into traditional money using BitPay, a payment service provider tasked with ensuring that the cryptocurrency comes from reliable sources and is not linked to criminal activities or money laundering.

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