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Automakers mulling the idea of accepting cryptocurrency as payment for selling their cars is nothing new. However, Italian sportscar brand Ferrari has become one of the major automobile brands to accept cryptocurrency as a payment method in the US, Reuters has reported. The automaker has also reportedly said that it will extend the scheme to European markets as well.
Ferrari has reportedly claimed that it has taken the decision to accept payment through cryptocurrency after receiving requests from specific markets and dealers as many of its clients have invested in crypto. Also, the automaker has reportedly stated that it has been receiving requests from wealthy customers in the European market to open the provision of payment through cryptocurrency.
Speaking about this decision, Ferrari’s Chief Marketing and Commercial Officer Enrico Galliera said that cryptocurrencies had made efforts to reduce their carbon footprint through the introduction of new software and a larger use of renewable sources. “Some are young investors who have built their fortunes around cryptocurrencies,” he said revealing the reason behind accepting crypto as a means of payment, while adding, “Some others are more traditional investors, who want to diversify their portfolios.”
Cars being large ticket products cryptocurrency’s entrance in the vehicle retail segment could be the beginning of an interesting trend. However, to date, the automakers along with other blue-chip companies have steered clear of cryptocurrency as the volatility of such digital currencies renders them impractical for commercial transactions. Also, government regulations and high energy consumption too have also prevented the spread of cryptocurrencies as a means of payment.
Previously, Tesla started accepting payments in cryptocurrency in 2021 for selling its electric cars. However, Tesla CEO Elon Musk halted the move later because of environmental concerns and in the face of criticism.
First Published Date: 15 Oct 2023, 11:10 AM IST
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