Ferrari Embraces Crypto for Car Purchases in Europe

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Ferrari will begin accepting cryptocurrency payments in Europe later this year, following a successful launch in the United States.

The Italian luxury sports car manufacturer announced on Thursday that the new payment option will be available at its European dealerships from the end of July.

Ferrari posts double-digit profit, sales rises for Q1 2024, confirms full-year guidance

Ferrari reported double-digit increases 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 said the expansion into Europe comes after the successful introduction of the alternative payment system in the U.S. less than a year ago.

According to DW, the move is designed to help dealers better meet the evolving needs of their customers.

The statement reads in part:

“This service has been particularly appreciated by clients who, thanks to the speed, security and transparency of cryptocurrency transactions, were able to complete the purchase formalities in a short time and in any case within the day.”

When Ferrari started accepting cryptocurrency payments in the US, it partnered with BitPay to facilitate transactions in Bitcoin, Ethereum, and the stablecoin USDC.

BitPay converts these cryptocurrency payments into traditional currencies for Ferrari dealers, shielding them from any price volatility. Customers do not face any additional fees or surcharges.

Enrico Galliera, Ferrari's marketing director, noted that the initiative is designed to help attract people who might not currently be clients but could afford a Ferrari.

“We are not talking about people who have 1 BTC (about $43,000) in their account, but rather individuals who own a significant amount of cryptocurrency.”

Ferrari has not yet confirmed if it will use the same arrangement in Europe.

Most blue-chip companies have steered clear of cryptocurrency because of 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 to charge 7.5% VAT on crypto assets

In related news, Legit.ng reported that the Nigerian government will begin charging a 7.5% value-added tax on cryptocurrency assets from July 8, 2024.

One of the biggest crypto platforms, KuCoin, emailed its customers to disclose that transactions will be subject to a 7.5% VAT.

The cryptocurrency exchange disclosed that, in line with the government's directives, it will charge users whose KYCs are registered in Nigeria.

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