Industry Update: Crypto Can Now Be Used For Rent Payments

April 30, 2022 2:44 pm

The crypto industry has already made great strides when it comes to getting closer to mainstream adoption and integrating it as part of our daily lives.

So far, it has already been used for things like tax payments and as payment for various government services.

Recently though, it seems it now has a new major use case which is that major real estate investment firm Jamestown has now announced that it will be accepting crypto for all rent payments.

The firm shared that it will be using BitPay in order to facilitate the transactions and as an intermediate exchange.

If the use of crypto to pay for rent starts to take off within the real estate industry, investors expect adoption to accelerate at a rate much higher than expected.

Yahoo reports:

Stating the reason behind enabling this provision for their tenants, the President of Jamestown, Michael Phillips, said,

“Blockchain technology and the digital assets it enables, like cryptocurrencies and non-fungible tokens, are key components to the evolution of real estate.

Allowing for cryptocurrency payments is part of our commitment to innovation and larger digital asset strategy to optimize and maximize our physical real estate through technology and virtual integrations.”

Since Jamestown will not be receiving or holding cryptocurrencies directly, BitPay will convert the cryptocurrencies received from tenants into fiat.

The cryptocurrencies acceptable for the rent payments initially include Bitcoin (BTC), Bitcoin Cash (BCH), Ethereum (ETH), Wrapped Bitcoin (WBTC), Dogecoin (DOGE), Litecoin (LTC), and five USD-pegged stablecoins (GUSD, USDC, USDP, DAI, and BUSD).

Jamestown has revealed that they will first start allowing this option to all of its tenants within the United States first with future plans to do the same for all of its real estate properties within Europe.

With that being said, there are still some skeptics about this new approach as many are concerned about the market volatility.

As a result, that volatility could harm the tenant’s ability to pay rent which would be an obstacle for real estate management firms as it presents a risk.

The same concerns were also voiced when crypto assets were introduced to be used as collateral for home buyer’s mortgage loans.

Still, many see this as necessary growing pains until the crypto market reaches maturity.

CryptoNewsBtc.org reports:

Given the state of the market, it’s fairly unsure if folks could be prepared to go for paying in crypto.

This may very well be as a result of the market’s volatility is wildly unpredictable and may hurt anybody’s holdings inside a matter of hours.

For instance, any tenant who purchases crypto to pay their lease the subsequent might probably lose their cash inside these 24 hours because it has occurred previously.

An occasion of the identical will be discovered within the pink candle of April 26 when inside 24 hours, Bitcoin, together with many of the different altcoins, misplaced greater than 5% of its worth, some even touching 12%.

This could eventually be the catalyst that convinces the rest of the real estate management industry to start doing the same which would integrate the two industries in a way that has never been done before.

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