Ferrari's Acceptance Of Bitcoin And How It Could Change Car Buying

Ferrari recently announced the extension of its cryptocurrency payments to European dealers. Originally, cryptocurrency was a system used by Ferrari only in the US, but the relative success of this has prompted Ferrari to expand crypto acceptance to Europe. With Ferrari being the ultimate of many car buyers, how will other car brands respond to this development?

👉 Bitcoin: a brief history
👉 Ferrari x Bitcoin
👉 How this could re-shape the car industry
👉 How supply chains could benefit from cryptocurrency
👉 Reduce your counterfeit risk
👉 How dealerships should react
👉 Keep on top of industry developments with Marsh Finance

Bitcoin: A Brief History

Bitcoin was initially born in 2008, creating the blockchain system that supports the cryptocurrency market of today. By 2011 Bitcoin had reached parity with the US dollar, and continued to grow from here. At one point, a single Bitcoin was worth upwards of $50,000, a sign of its massive growth since 2008. Traditional markets are still cautious in their acceptance of Bitcoin as a payment option, but the potential is there for mass Bitcoin use in traditional markets.

Ferrari X Bitcoin

One of the first major car brands to adopt cryptocurrency, Ferrari has lit the touch paper for future crypto use in the car industry. Many private dealers accept cryptocurrencies, but car brands themselves are reluctant to follow suit, except for Ferrari. Ferrari is committed to transaction security, relying on experienced crypto companies to handle the payment process that sees cryptocurrency translated into traditional currency. The Italian car manufacturer clearly sees Bitcoin as a chance to diversify payment options and appeal to a more diverse customer base. The question is, how will this impact the car market?

How This Could Re-Shape The Car Industry

The car industry is hesitant to accept cryptocurrencies, but some areas of the market have become receptive to the new form of payment. Some luxury car dealers already accept Bitcoin for supercars, with BitCar set up specifically to trade cars for the new currency. The case for Bitcoin is strong, with payments able to be made to anywhere around the world, regardless of exchange rates and void of slow bank processes.

How Supply Chains Can Benefit From Cryptocurrency

It’s not just consumers that benefit; businesses can, too. Car manufacturing supply chains are no strangers to issues. The global semiconductor shortage brought on by the Coronavirus pandemic ground supply chains to a halt and left many waiting months for their new wheels. Cryptocurrency, and more importantly, the blockchain that comes with it, offers a potential solution. Manufacturers can use blockchains to track car parts and keep on top of supply chains. The advanced technology can provide customers with real-time updates about their cars and create an all-in-one car experience that’s seamless and provides customers with real-time updates. While there are issues to be resolved with cryptocurrencies, like privacy, the opportunities it presents to the automotive industry could make it worthwhile.

Reduce Your Counterfeit Risk

Due to the mass reporting and tracking that comes with blockchains, the ability to counterfeit blockchain cars is near zero. As a car dealer, being able to relax knowing your stock is safe and accounted for is key. Blockchains can provide the means to do this. This applies to car ownership, too. As a dealer, you can view the journey a car has gone on, seeing previous owners clearly and easily, with everyone reported and accounted for. This transparency is essential in creating a clear proposition for your customers whilst also keeping track of your car stock.

How Dealerships Should React

For dealerships, having an eye to changing customer demands is key. The growing wave of technology in the customer journey shows no signs of slowing down, and the continued acceptance of cryptocurrency signals the potential future direction of the industry. For dealerships currently unsure of the road ahead, educating yourself on the cases for and against crypto, as well as identifying the steps necessary to implement the system in future, is key to being best prepared for potential sudden changes.

Keep On Top Of Industry Developments With Marsh Finance

As a car finance lender with over 50 years of experience, we have seen a fair share of industry changes. Join Marsh Finance and benefit from vast experience in navigating the changing automotive industry at a time when technology is reshaping the industry.