Each day, Coinrule will run through the state of the digital assets market for Blockbeat, your home for news, analysis, opinion and commentary on blockchain and digital assets.
Ferrari announced it will start accepting cryptocurrency payments in Europe by the end of this month. This move follows a successful launch in the US last year. Ferrari plans to expand crypto payments to other markets soon. The iconic luxury car manufacturer aims to meet the evolving needs of its clients. According to the company, this initiative will support dealers in better addressing customer demands.
This move comes after Ferrari’s successful introduction of cryptocurrency payments in the US in October 2023. Ferrari partnered with BitPay, a leading crypto payment processor, to enable this service. Through BitPay, customers could purchase luxury cars using Bitcoin, Ether, and the stablecoin USDC. BitPay supports over 100 blockchain wallets, including MetaMask, Trust Wallet, and Ledger Wallet. To protect dealers from the volatility of cryptocurrency prices, the payment processor converts crypto payments into traditional currencies immediately upon transaction.
Ferrari’s European expansion is a direct result of the success in the US market. In the US, the adoption rate among dealers reached around 50%. Although Ferrari has not disclosed whether it will continue with BitPay for other markets, several European dealers have already started integrating the new transaction system. Referring to Cointelegraph, approximately 60% of dealers in the EU are in line with the crypto adoption project. By the end of the year, Ferrari plans to further extend crypto transactions to additional countries where cryptocurrencies are legally accepted.
Other car manufacturers have also ventured into crypto payments. Tesla began accepting Bitcoin and Dogecoin for its cars in 2021. The electric car manufacturer suspended the service a few months later due to environmental concerns. Other luxury automakers like Lamborghini also accept crypto payments. Additionally, some individual dealerships for brands like Nissan and BMW offer crypto payment options. Ferrari’s move is part of a broader trend in the automotive industry.
Despite the popularity of cryptocurrency as an investment, its use as a payment method remains relatively rare among major companies. One reason is that crypto holders often prefer to retain their assets, hoping for future value appreciation. This concern is less significant when purchasing high-value luxury items like cars, which themselves hold long-term value. The future will reveal whether Ferrari’s crypto expansion into the European market will elevate its status and impact the broader automotive industry.