In recent years there has been a boom in the arrival of cryptocurrency sponsors in F1, and the vast majority of the grid is already sponsored by companies of this type of digital currency.
Red Bull recently signed the largest crypto sponsorship deal, a nearly €140 million deal with Bybit , a deal that is funded partly in cash and partly in tokens.
But cryptocurrencies remain a controversial topic punctuated by hacking issues, with links to criminal activity and scams leaving many people skeptical of its usefulness.
In addition, questions arise about the impact it has on the environment due to the large amount of electricity that some currencies, such as Bitcoin , require to maintain their processing in the block chain.
Some wonder if the environmental issue is causing cryptocurrencies to clash with F1’s sustainability push, but the teams believe it’s a broader issue.
In fact, they endorse the view that cryptocurrencies can act as a catalyst to actually drive better renewable energy sources so instead of seeing cryptocurrencies as bad for the environment, they believe they can help make things better.
Red Bull team principal Christian Horner said: “I think the world is evolving and changing. The whole cryptocurrency sector is fascinating. You see it more and more in all sports and of course it’s something that we We also take into account.”
“We take the sustainability argument very seriously, and of course so do our partners, so we’re obviously looking at technologies that can improve that. If we can help achieve that, it’s an exciting new sector and it’s great to see so much interest.” and that F1 is so attractive.
Mercedes director Toto Wolff acknowledges that the doubt about crypto power usage is valid, but acknowledges that it is something the industry is aware of and is striving to resolve. This year, for example, the Ethereum network will switch from proof-of-work to proof-of-stake, reducing the energy it needs to run.
Wolff believes that the benefits that cryptocurrencies can offer over the traditional banking sector should be appreciated, and acknowledges that the world needs to accept and understand the changes that are coming rather than reject them.
“The sustainability argument is extremely important, but it’s not just about mining and the energy that’s consumed, it’s also about where the energy comes from,” Wolff said.
“But you can’t shut down and oppose modern technology. It’s an area that will grow.”
“When we look back 10 years from now, having to make payments that take two days and can’t be done outside of the weekly schedule, we’ll consider that backward. And this is where cryptocurrencies are coming in.”
“They’re their own industry. That’s why they’ve become a big deal in the financial world and obviously they’re looking for exposure in Formula 1.”
“For me, it was fascinating to understand crypto exchanges, and [Mercedes sponsor] FTX is one of them, with billions of transactions every day.”
“That’s something you can’t stop, and you have to do it right. And we’re a good partner for them on sustainability goals.”
Alpine director Laurent Rossi , whose team has just launched fan tokens with Binance, suggests that it is unfair that cryptocurrencies are criticized for their energy use.
Alpine A522
And it suggests that there are industries, such as social media and so-called entertainment , that consume the same amount of electricity on a daily basis but are rarely criticized.
“It’s hard to ignore that we’re digitized in everything,” he said. “Only in this press conference we are already causing a great expenditure of energy. Probably the most widespread source of energy is the media.”
“We accept cryptocurrencies. It is currency, it is a digital universe, it is going to offer new possibilities. I also have the opinion that cryptocurrencies can also diminish the importance of real currencies, which also have negative effects on society.”
“You can see it both ways. You can see it as glass half full or glass half empty. Personally, I’m all for it. It goes in the right direction and opens up new eras and shows that F1 is modern and relevant to the audience and not stuck in last”.
AlphaTauri boss Franz Tost also believes it is wrong to label all cryptocurrencies as equal, as proof-of-stake blockchains like Fantom , which sponsors his team, use considerably less energy.
“Cryptocurrency has become a major pillar in the business world and we can’t close our eyes because they want to participate,” Tost said.
“In terms of sustainability, they don’t have the same way of creating energy. So you have to be careful and you can’t say it’s not sustainable. It depends on which one.”
“Different currencies have different forms, and for us it is an important part of the future. Of course we will support this.”
