Real Estate Deal Completes Directly With Bitcoin For The First Time Ever

May 10, 2022 2:21 pm

There have been real estate sales that have happened before where Bitcoin was used to acquire the real estate, but a new milestone was just reached recently in Portugal.

Typically, someone who buys a house with Bitcoin usually uses a payment processing service where the digital asset is first converted into a fiat currency like the euro before the deal is completed.

Now, for the first time ever, a deal was just completed in Portugal where an apartment was sold using just Bitcoin directly without any conversions to fiat.

As a result, this marks the first time where there was a direct transfer from a digital asset to a physical asset like real estate.

BitcoinMagazine reports:

“This deed represents a historic milestone, the transfer of a digital asset to a physical asset – a house – without any conversions to euros,” said real estate company Zome, according to the report, which participated in the sale in conjunction with a group of lawyers and other partners.

The sale of real estate for bitcoin has recently gathered popularity across different parts of the world.

In November, Latin American property technology (proptech) market leader La Haus announced it would start accepting BTC as payment for homes on-chain and on Lightning through an integration with Bitcoin payment processor OpenNode.

La Haus sold its first property for bitcoin two months later as it bridged the purchase of an apartment in Mexico for 5.78 BTC. The company sold yet another property for bitcoin in the following month, the first in Colombia.

The trend of using digital assets like Bitcoin to purchase real estate has also been increasing in other areas of the world such as the United Arab Emirates.

Real estate developers in the region have already started to experiment accepting Bitcoin payments for real estate properties on a wider scale.

A success in this new initiative would help establish the UAE as a primary crypto hub in the world and would likely attract a large amount of capital from crypto investors internationally.

With Portugal joining the list of nations who are participating in this trend, it is clear that a disruption in the real estate market would greatly accelerate the mass adoption of digital assets.

Some countries are even incentivizing the use of digital assets by providing benefits such as exempting crypto investors from capital gains taxes.

Bitcoin.com reports:

The new owner paid 3 bitcoins (BTC) for the home, worth around 110,000 euros at the time the purchase took place. The title deed was transferred in Porto’s Póvoa de Varzim district this past Thursday, May 5, the business news portal Idealista unveiled.

The purchase was made with the help of real estate agency Zome, the law firm Antas da Cunha Ecija, and partners from Switzerland’s Crypto Valley. The Chairman of the Portuguese chamber of notaries also participated.

Buying property directly with cryptocurrency is now possible in Portugal thanks to a new provision recently adopted by the Order of Notaries, the body which regulates notary activities together with the Ministry of Justice.

In the past, the coins had to be converted to euros before a payment to a seller was made. Now, the real estate acquisition can be a 100% crypto operation, in which the digital money is exchanged for the rights to the property.

Perhaps there will be cases in the future where other digital assets besides Bitcoin start being used for real estate purchases.

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