Ferrari starts accepting crypto payments in the US

Ferrari, a luxury car brand, has started to accept cryptocurrency payments in the U.S. and plans to extend the service to Europe, the firm’s chief marketing and commercial officer, Enrico Galliera told Reuters.

See related article: Weekly Market Wrap: Bitcoin falls below US$27,000 following CPI and Israeli conflict

Fast Fact

• According to Galliera, Ferrari is collaborating with crypto payment processor BitPay for Bitcoin, Ether and USDC payments in the U.S. Ferrari may work with other providers in different regions. Payment processors are responsible for ensuring that crypto payments come from legitimate sources and are not related to any criminal activity or potential tax evasion.
• Bitcoin, the first cryptocurrency, was invented by its pseudonymous creator Satoshi Nakamoto in 2008 as a peer-to-peer electronic payment system. However, due to dramatic price swings and technical limitations, cryptocurrencies have yet to catch on as a major payment medium.

• Reuters reported that Bitpay will immediately turn Ferrari’s crypto payments into fiat currencies. Galliera said that this approach will mean that the firm is “shielded from their wide fluctuations.”

• Galliera added that most U.S. car dealers have already signed up or are on the brink of accepting cryptocurrency payments.
• Electric car manufacturer Tesla briefly accepted Bitcoin payments in 2021 but halted the service due to environmental concerns. Tesla boss Elon Musk floated the possibility of revisiting Bitcoin payments if the network’s mining became at least 50% renewable. Last month, Bitcoin surpassed this threshold, as noted by Bloomberg analyst Jamie Coutts. 

See related article: Digital frontiers: Alex Tapscott on Web3, AI, and banking’s new dance