The very first Portuguese property purchase was made for Bitcoin processed – without being converted back into fiat money.
Buy a house with bitcoin
As reported by local news outlet Idealista, it was a T3 apartment in Braga that cost the buyer exactly 3 Bitcoin. That’s about 102,000 euros or $108,000 at current prices.
Until last month, buyers had to accompany them when buying real estate cryptocurrencies first convert their holdings into euros. However, the Portuguese Notarial Code has since established clear rules for drafting deeds for real estate sales made directly in digital assets.
“This deed represents a historic milestone, the transfer of a digital asset into a physical asset – a house – without any conversions into euros,” real estate company Zome said on its Facebook page. The group participated in the transaction along with the law firm Antas da Cunha, the Portuguese head of notaries and other crypto-related partners.
The deed creation process required additional details that are not required for the creation of an ordinary contract. This included the payer’s bank account, the digital asset (bitcoin) involved, the network address, the parties involved, and proof of the crypto transaction taking place.
If the transaction exceeded $200,000 in value, authorities would need to be notified and crypto prices would need to be compared to that of the promissory note from the date of the deed.
Nuno da Silva Vieira – lawyer at Antas da Cunha – believes that digital currencies are a great opportunity for growth and value creation in the region. “This type of business will grow exponentially and Portugal is showing very promising signs in terms of the digital economy,” they said.
Crypto as a medium of exchange
The Global South is increasingly turning to Bitcoin and other cryptocurrencies as actual “currencies” and regulatory assurances allow them to be used as such.
The Central African Republic is now the second country to adopt Bitcoin as legal tender. Panama has also legalized the use of cryptocurrencies for tax payments and does not levy capital gains taxes on digital assets.
On the real estate front, Latin American proptech La Haus has started accepting Bitcoin for home payments through OpenNode. The company sold a Mexican apartment for 5.78 bitcoin in January.
Source: Crypto News Deutsch