The mainstream adoption of cryptocurrencies has brought immense potential to the fintech industry, and some of the capabilities have spilled over into the real estate market. Subsequently, the real estate sector is evolving to accommodate a new crop of investors who prefer making payments using crypto.
The trend of investing in real estate with crypto gained momentum in 2021 following a market explosion that saw Bitcoin (BTC) breach the $60,000 mark. Today, numerous jurisdictions have amended their real estate laws to allow property purchases using crypto due to their transformative impact.
Alexander Tkachenko, CEO and Founder of the VNX liquidity mining platform, told Cointelegraph that the full capabilities of crypto in real estate remain untapped.
“There is still a huge demand for alternative financial and payment instruments around the world,” he said while adding that favorable regulations would go a long way in creating a more enabling environment for both industries:
“Development of regulation that will create clear rules for industry players and protect investors.”
Scott Scherer, CEO of Owners Unity — a company that allows homeowners to derive passive income from their assets through a decentralized finance (DeFi) model — echoed Tkachenko, telling Cointelegraph, “Investors and governments have come to accept the fact that crypto is here for the long term.”
He added that investors are increasingly using cryptocurrencies to transact due to the efficiency of crypto networks as compared to conventional banks.
Anastasia Kor, the chief marketing officer and board member of the innovative MetaFi ecosystem, Choise.com, told Cointelegraph that novel blockchain concepts such as real estate tokenization also appeal to global investors:
“The projection that tokenization will help to make real estate more liquid is not far from the truth. Tokenization will position the luxury properties that are confined to a region and make them global and accessible to interested buyers and investors around the world.”
So, which countries currently support real estate purchases with crypto?
Thailand was among the first Asian countries to legalize cryptocurrency use. The nation presently allows real estate buyers to make payments using crypto. Investors who wish to use this mode of payment are required to seek the services of local accredited real estate agencies that accept virtual currencies.
While the nation had previously banned cryptocurrency…