Ferrari Joins Crypto Race, Begins Accepting Digital Payments In US

Ferrari RACE, the luxury sports car maker, has reportedly taken a groundbreaking step by beginning to accept cryptocurrency as payment for its top-tier vehicles in the United States. 

The move comes after a surge of requests from the brand's affluent clientele, expressing a growing demand to use their digital assets for such purchases, according to a news report by Reuters, which cited Ferrari's Chief Marketing and Commercial Officer Enrico Galliera.

While the bulk of leading corporations have traditionally been hesitant to adopt cryptocurrency due to concerns over its instability and ecological implications, Ferrari is aiming to bridge this gap. 

This isn't the first instance of an automotive giant venturing into the crypto realm. 

Tesla Inc. briefly accepted Bitcoin in 2021, only for the practice to be suspended later by CEO Elon Musk over environmental concerns, the report added.

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The Italian carmaker's pivot to accept cryptocurrency was a strategic response to market demands and dealer feedback, as many of Ferrari's clients have considerable investments in cryptocurrency, according to Reuters.

"Some are young investors who have built their fortunes around cryptocurrencies. Some others are more traditional investors, who want to diversify their portfolios," Galliera told the outlet. 

Ferrari's adoption of cryptocurrency isn't merely a U.S.-centric strategy. The company reportedly plans to expand the acceptance of crypto payments to Europe by the first quarter of the next year, with further rollouts in other regions that legally recognize cryptocurrency.

Ferrari has also partnered with prominent cryptocurrency payment processor BitPay in the U.S. This allows transactions to be made in major cryptocurrencies such as Bitcoin, Ethererum and USD Coin. 

To ensure stability for Ferrari's dealers, BitPay will instantly convert cryptocurrency payments into traditional currency, safeguarding them from potential market volatility, according to Reuters.

Another notable facet is BitPay's commitment to ensuring that digital currencies stem from lawful sources, eliminating the assets' chances of being connected to unlawful activities or fiscal evasions.

Galliera stated that most of Ferrari's U.S. dealerships have already embraced the new payment system, and he is confident that more will get on board shortly.

In recent financial news, Ferrari showcased a strong performance with a remarkable Q2 earnings beat.

Price Action: RACE shares closed higher by 0.95% to $312.02 on Friday. 

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.