- Ferrari has announced a plan to accept cryptocurrencies as payment for its cars in Europe after doing the same in the US
- The company said the move aims to help it meet the changing needs of its customers, as it plans to extend to other markets
- It would be noted that some blue chip companies have avoided transacting in cryptocurrencies due to its volatile nature
Legit.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology and the stock market.
Ferrari is set to start accepting cryptocurrency payments in Europe, responding to requests from its affluent clientele.
The Italian luxury sports car manufacturer announced that this new payment option will be available in European dealerships beginning in late July.
Photo credit – Ferrari, Fair Observer
Source: UGC
Ferrari embraces crypto for car purchases
Ferrari posted double-digit rises in profits and sales for the first quarter of 2024 and confirmed its full-year guidance.
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In a statement, the company mentioned that its expansion into the European market came after the successful introduction of this alternative payment system in the United States less than a year ago.
According to DW, this move aims to help dealers better meet the changing needs of their customers.
The statement read in part:
“By the end of 2024, Ferrari will expand cryptocurrency transactions to other countries in its international dealer network, where cryptocurrencies are legally accepted.”
When Ferrari started accepting cryptocurrency payments in the US, it collaborated with BitPay to facilitate transactions in Bitcoin, Ethereum, and the stablecoin USDC.
BitPay converts these cryptocurrency payments into traditional currencies for Ferrari dealers, protecting them from price volatility. Customers do not face any additional fees or surcharges.
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Enrico Galliera, Ferrari’s marketing director, remarked that this initiative would help attract individuals who might not currently be clients but could afford a Ferrari.
Ferrari has not yet confirmed if it will use the same arrangement in Europe.
Most blue-chip companies have avoided cryptocurrency due to the volatility of Bitcoin and other tokens, which makes them impractical for commercial use.
Inconsistent regulations and high energy consumption have further hindered the adoption of crypto as a payment method.
The Italian luxury carmaker recently opened a new solar-powered factory, where its highly anticipated all-electric car will be produced starting in 2026.
Nigeria charges 7.5% VAT on crypto assets
In related news, Legit.ng reported that the Nigerian government will charge a 7.5% value-added tax on cryptocurrency assets effective July 8, 2024.
KuCoin, one of the biggest crypto platforms, emailed its customers to disclose that transactions will be subject to a 7.5% VAT.
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The cryptocurrency firm disclosed that, in accordance with the government’s directives, it will charge users whose KYCs are registered in Nigeria.
Source: Legit.ng
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