It is now possible to pay for your car in cryptocurrency in France

It is now possible to buy a car with cryptocurrencies in France. LG Group, which distributes brands such as Mercedes-Benz, Fuso, Smart, Yamaha and Jeep, now accepts payments in Bitcoin, Ether and 23 other cryptocurrencies.

that The LG Group, a major car dealer that represents around twenty dealerships in France and Spain, is opening up to cryptocurrencies. Since September 15, 2022, the company based in Perpignan has activated pay, rent or repair a car by paying the bill with cryptocurrencies. It is also possible to buy trucks or motorcycles. This is a great first time on the French market.

As part of his project, The LG Group turned to Lyzi, a French start-up specializing in payment applications. The application developed by Lyzi allows you to quickly pay for purchases with digital assets. Note that startup is dependent on Zebitexa French cryptocurrency exchange registered as a provider of digital assets (PSAN) with the Autorité des Marchés Financiers (AMF) to manage the purchase of the assets.

Also read: despite Bitcoin’s decline, the crypto community is not giving up and continues to look ahead

Cryptocurrencies converted to euros during payment

The user must notify his ” wants to pay in crypto when paying, chooses the cryptocurrency he wants to pay with and the euro/crypto conversion is immediate », explains the press release. During payment, cryptocurrencies become automatic converted to fiat currencies free of charge. The LG Group does not accept cryptocurrencies, but euros. This conversion aims to alleviate price volatility.

De facto, the transactions do not escape the French tax authorities. In fact, the law requires it 30% tax on any conversion of cryptocurrencies to fiat currencies. This is called the flat tax. Twenty-five cryptocurrencies, including Bitcoin or Ether, are supported by Lyzi’s system. For the record, the start-up has already developed the cryptocurrency payment system for Beaugrenelle, the shopping mall in Paris’ 15th arrondissement.

“Enter the amount in euros on the application, the cryptocurrency equivalent will appear on the screen and generate a QR code. The partner merchant only needs to scan the QR code to validate the transaction and be paid in euros”details Lyzi on its website.

In the ad, the dealer highlights lightness whereby cryptocurrency payments are made through Lyzi. It takes no more than three minutes for the transaction to be confirmed. In addition, the euro is automatically deposited into the company’s account within 24 hours of the purchase.

Democratization of cryptocurrencies in France

In its press release, Lyzi claims to want to “democratization of cryptocurrency” by joining forces with a leading company in the automotive industry. Damien Patureaux, head of Lyzi, specifies:

“Through this partnership, we aim to demonstrate the simplicity of payment in crypto by allowing LG Group to capture a new customer base”.

The project is primarily directed to holders of a large amount of cryptocurrencies. Instead of selling their tokens to buy a car, investors will be able to trade their assets directly for a vehicle.

“In this hyper-competitive world of automotive distribution, we need to offer services that are differentiating. This allows us to talk to buyers we don’t know, especially for car and motorcycle purchases,” says Aline Allely, the company’s marketing manager.

She specifies that the LG group has been working on cryptocurrency payments for three years. The volatility of the price of digital currencies however, delayed the birth of the project, emphasizes the framework. Bitcoin, like other assets in the ecosystem, actually experiences blinding waves of falls and rises.

“We have witnessed the beginning of the digital shift. The development of the Internet has already redefined consumer expectations and needs at the center of the customer experience. So, buying a spare part or a vehicle or rent in crypto, why not, after all it is a logical next step”explains Gérald Imbert, CEO of the LG Group.

The initiative of the LG group is reminiscent of Tesla’s initiative in 2021. Under the impetus of Elon Musk, the car manufacturer began to accept Bitcoin as a means of payment for its electric cars. Faced with pressure from shareholders, Tesla quickly backed down, citing environmental concerns.

Car dealers are opening up to cryptos

It is not the first retailer to branch out into the crypto asset sector. Around the world, car dealers are already accepting cryptocurrency as a means of payment. This is especially the casea Nissan dealer in Florida and D’a Porsche dealer in Baltimore. These companies have turned to firms that specialize in blockchain payments, such as BitPay, to set up the appropriate infrastructure.

Another example is HGregoire, a Canadian multinational specializing in the sale of used vehicles. Since March 2021, the company has accepted cryptocurrency payments at all of its 30 retailers in North America. Unlike LG Group, HGregoire keeps a part of the revenue generated in the form of cryptocurrencies. Note that there are also online platforms exclusively intended for the purchase of vehicles in cryptocurrencies. For example, there is BitCars, a site specializing in luxury and collector cars.

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