As the use of cryptocurrencies grows in popularity, an increasing number of people are using digital assets to acquire and sell real estate.
It was reported on May 5 that a property in Braga, Portugal was sold exclusively on the basis of Bitcoin (BTC), without any conversion into euros. With this agreement, the real estate sector will have experienced a first of its kind.
The T3 apartment in Portugal was acquired for three Bitcoins, which is equivalent to approximately 110 thousand euros. Witnesses to the signing of the deed of ownership of the building were representatives of the real estate company Zome, the law firm Antas da Cunha Ecija, the president of the notaries and other partners of Crypto Valley Switzerland.
Zome announced the development in a Facebook post, noting that the company is “at the forefront” when it comes to Web3 technology and cryptocurrency adoption:
“This act represents a historic step, the transfer of a digital asset to a physical asset – a house – without any conversion into euros. We believe that a new world of possible business in real estate is opening up today. !
Web3 initiatives bring growth and value creation
Zome’s chief technology officer, Carlos Santos, believes the deal would provide the company with new opportunities. According to Nuno da Silva Vieira, lawyer for Antas da Cunha Ecija, the deal has the potential to be a “great opportunity for growth and value creation” in Portugal.
Other initiatives related to Web3 are being created by Zome and will be presented “very soon”, according to the conclusion of the company’s blog.
Until last month, buying real estate with cryptocurrencies required the buyer to first convert their cryptocurrency holdings into euros. Since then, however, the Order of Notaries of Portugal has developed explicit guidelines for the formation of deeds for real estate transactions that are carried out entirely through digital assets.
A comparison of the cryptographic values between when the deed was recorded and when the promissory contract was signed, as well as between the dates of the two documents, would be necessary to assess whether the transaction was legal or not if it was worth more than 200,000 euros.