Cryptocurrencies Making Headway In Real Estate – An Omen Of Things To Come
- Bobby Simmons
- May 18, 2021
- Blockchain
- 0 Comments
Digital coins are no stranger to the real estate market. Tokenization has already taken place in that most lucrative of industries, but now, cryptocurrency is starting to make an impact on the day-to-day transactions that real estate deals in. In early April, CNBC reported that Caruso founder Rick Caruso was to allow tenants to pay rent in cryptocurrency. Now, this is going one step further as real estate agents across the country are opening their door to crypto-bought assets.Crypto depositsCryptocurrencies are an interesting financial story in that they’ve had an equal impact on big investors as they have on the tech-focused people who first invested, or mined, in the early days. Certain realtors are now granting mortgages where a down payment with Bitcoin has been made. This makes the process infinitely more accessible to those investors who perhaps don’t have the credit history or liquid assets that banks might previously have demanded. Indeed, experts including Fortune are now suggesting retail investors might invest in real estate with cryptos.Greater level of assurancePart of the reason that lenders are warming up to the idea of digital transactions is the greater level of assurance that cryptocurrency tech sometimes offers. Those with a history in Bitcoin will be well aware of its foundations in blockchain, and the benefits this can offer to the real estate industry. As TechCrunch outlines, blockchain has the potential to offer a cast-iron guarantee to lenders and others in the supply chain as to the intrinsic value of the coins used in the transaction and, importantly, their provenance.Money launderingBoth in the USA and globally, real estate is a huge vector for money laundering and, as a result, the proliferation of organized crime. Thomson Reuters reports that up to 22% of luxury home deals in the USA do not comply with money laundering regulations. Once these transactions are completed, it becomes a monumental task to unearth the paper trail and take legal action. The blockchain offers assurance against this at every stage, and a real option for regulators and industry figures to ensure that they aren’t exchanging money of dubious origin.In that respect, blockchain and cryptocurrencies could be the ultimate reformer for a timeless market. It gives a seamless and instantly assured way to exchange currency, while also meeting regulatory and legal demands effortlessly. Cryptocurrency could be set to disrupt real estate in a big way.
