Ferrari Drives into the Crypto Lane: Accepting Digital Currencies

Ferrari, the luxury sports car manufacturer based in Italy, plans to introduce cryptocurrency payments in the U.S. and potentially extend this initiative to Europe. The move is in response to growing demand from their affluent clientele, including traditional and young cryptocurrency-savvy investors. Ferrari will partner with BitPay, a crypto payment provider, to process transactions in Bitcoin (BTC), Ethereum (ETH), and the stablecoin USD Coin (USDC) for the initial U.S. rollout. 

Notably, Ferrari and its dealers will receive payments in traditional currency, with no direct management of cryptocurrencies, ensuring the source of crypto funds is verified and eliminating exchange rate volatility risks. This decision aligns with major companies’ limited adoption of cryptocurrency payments, exemplified by Tesla, led by Elon Musk, who briefly accepted Bitcoin payments in 2021 but discontinued the service due to environmental concerns related to Bitcoin mining.

Automobile and Blockchain: A Glimpse 

Between 2021 and 2023, Bitcoin’s price and buying power dropped due to market crashes and rising real-world inflation. In 2021, you could buy a Tesla with one Bitcoin, but as Bitcoin’s value fluctuated, you needed more Bitcoins to do the same.

Tesla’s cars remained the same price, but Bitcoin’s value changed. The average Tesla is considered affordable for many professionals. However, Ferrari doesn’t have an “entry-level” option; their cheapest model, the Roma, starts at around $225,000, and you can add many pricey options.

On a technical note, major car manufacturers like BMW have already integrated blockchain technology into their business processes. Blockchain provides secure and transparent ways to manage data and transactions, which can benefit supply chain management, vehicle history tracking, and other automotive operations. It enhances security, reduces fraud, and ensures data integrity.

Since 2018, BMW has been at the forefront of employing decentralized technology to enhance transparency and ethics within its cobalt supply chain. Growing concerns about the origin of cobalt, a critical component in electric vehicle batteries, prompted this strategic shift. By integrating decentralized technology, BMW established a traceable and accountable system that tracks the entire cobalt supply chain, from extraction to its use in their electric vehicles. This technology guarantees the responsible sourcing of cobalt and addresses ethical issues related to cobalt mining, especially in conflict-ridden areas like the Democratic Republic of the Congo.

BMW’s pioneering use of decentralized technology is a paradigm for promoting social responsibility and ethical conduct in supply chain management. It ensures that cobalt isn’t sourced from suppliers in regions where child labor is prevalent. This proactive approach showcases the transformative impact of decentralized technology in fostering ethical practices, making the supply chain transparent, and ultimately improving the sustainability of BMW’s electric vehicle production.

Ferrari’s Carbon Neutrality and Cryptocurrency Ventures

In 2021, Tesla’s CEO Elon Musk stopped accepting Bitcoin payments due to environmental worries. He said they’d reconsider if Bitcoin miners used cleaner energy for at least 50% of their operations. Since then, Bitcoin’s emissions have dropped by about 37.5%, and over half of Bitcoin mining worldwide now uses renewable energy.But the future looks promising for cleaner energy sources. Big projects are underway to shift the balance from dirty fossil fuels to cleaner power. Musk may keep his promise to bring back Bitcoin payments in the future.

On the other hand, Ferrari is determined to be carbon neutral by 2030 in everything they do, from making cars to using energy and materials. They’re also moving towards electric vehicles. Ferrari is fully committed to achieving carbon neutrality across its entire operation by 2030, addressing both direct and indirect greenhouse gas emissions. They are also focusing on using cleaner energy sources and materials in addition to their journey toward electrification. Ferrari’s Chief Marketing and Commercial Officer, Enrico Galliera, emphasized their dedication to this goal. They have been actively working to reduce their carbon footprint by implementing new technologies and incorporating more renewable energy sources.

Furthermore, Ferrari’s decision to accept cryptocurrency payments in the U.S. and potentially in Europe is a response to market demand and requests from their dealers. Some clients are young cryptocurrency investors who have amassed their wealth through digital currencies, while others are more traditional investors looking to diversify their portfolios. This move reflects Ferrari’s adaptability to the evolving preferences of its customer base. Bitcoin has faced criticism for its energy-intensive mining, while some other cryptocurrencies, like Ethereum, have improved their energy efficiency. This environmental concern continues to surround Bitcoin despite advancements in the crypto world.

In the first half of this year, Ferrari shipped more than 1,800 vehicles to its Americas region, which includes the United States. However, how many cars Ferrari anticipates selling using cryptocurrency was kept a secret. Enrico Galliera, Ferrari’s representative, mentioned that although their order pipeline is strong and fully booked through 2025, they are eager to explore the potential of this emerging market. This move aims to connect with individuals who might not traditionally be their customers but could be interested in purchasing a Ferrari.

Ferrari plans to extend its cryptocurrency program to Europe in the first quarter of next year and eventually to other regions where cryptocurrency is legally accepted. In 2022, the company sold 13,200 cars, with prices ranging from over 200,000 euros ($211,000) to as high as 2 million dollars. Ferrari, accounting for 46% of its total vehicle exports in the first half of this year, is in Europe, the Middle East, and Africa (EMEA).

Advantages of Using Cryptocurrency to Buy a Car

1. Tax Benefits: Cryptocurrency transactions may allow buyers to avoid paying capital gains taxes when they sell the car, as there is no need to convert the cryptocurrency back into a fiat currency.

2. Asset Leverage: Cryptocurrency owners can use their Bitcoin assets or income to purchase real-world assets like cars, which can be an attractive prospect for those who believe in the long-term value of their digital assets.

3. Speed and Anonymity: Cryptocurrency transactions are known for their speed and offer an extra layer of anonymity compared to traditional payment methods. This can be appealing to buyers concerned about their privacy.

Challenges and Technical Considerations

1. Volatility Risk: The cryptocurrency market is highly volatile, and the value of assets can fluctuate significantly in a short period. Buyers must carefully time their transactions to avoid unfavorable price changes.

2. Transaction Fees: While cryptocurrency transactions often have lower fees than traditional financial services, transaction fees may still be involved, depending on the cryptocurrency used and the payment method.

3. Wallet Management: Users must manage their cryptocurrency wallets securely to prevent loss or theft. This involves understanding private keys and taking appropriate security measures.

4. Legal and Regulatory Compliance: Cryptocurrency regulations vary by country and can change over time. Buyers must ensure they comply with local laws when using cryptocurrencies for large purchases like cars.

5. Limited Acceptance: Not all car dealerships or sellers accept cryptocurrencies, so buyers might have limited options when purchasing digital assets.

6. Confirmation Times: Transaction confirmation times can vary depending on the cryptocurrency and network congestion, which may affect the purchase speed.

7. Price Conversion: When using cryptocurrency, buyers need to consider the exchange rate and conversion fees if the seller quotes prices in fiat currency, potentially affecting the final cost of the car.


This move reflects a broader trend of limited cryptocurrency acceptance among major companies, exemplified by Tesla’s short-lived experiment with Bitcoin payments, driven by environmental concerns led by Elon Musk. Ferrari is committed to achieving carbon neutrality by 2030, focusing on cleaner energy, materials, and electrification. They’re also entering the cryptocurrency arena to meet market demand, appealing to young crypto investors and traditional clients looking to diversify.

Despite energy criticisms, Ferrari shipped over 1,800 cars to the Americas region in H1 2023. They haven’t disclosed how many cars they’ll sell for crypto, but they’re eager to explore this market. Ferrari plans to expand crypto payments to Europe in early 2024. In 2022, they sold 13,200 cars, ranging from $211,000.

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