The 26h of September was a great day for cryptocurrency enthusiasts. For the first time in Ukraine a deal was officially concluded to purchase real estate for cryptocurrency, according to the report of the State Agency for e-government.
"Such an electronic transatlantic deal on the exchange of real estate for the crypto currency Ethereum using the smart contract of the blockchain Ethereum is concluded for the first time in the world" stated the report, opening the door for many more remote real estate transactions on the blockchain.
A Silicon Valley start-up called Propy, conducted the transaction. TechCrunch founder Michael Arrington remotely purchased a $60,000 apartment in Kiev from Ukrainian developer Mark Ginsburg.
"This is only the beginning. With this transaction, we've broken first ground in putting the $217 trillion real estate market on the blockchain. We're starting with Ukraine, but over the coming year we plan to facilitate real estate transactions with the use of PRO tokens in California, Vermont, and Dubai," Natalia Karayaneva, CEO of Propy said.
The law firm Juscutum attended the deal.
“In the future, every person in any country in the world will be able to buy real estate in any other country in electronic form in 24/7 mode, and all data on the transaction will be recorded in the blockchain. The buyer will receive an electronic certificate of ownership, which will be reliably protected by blockchain technology. The entire transaction process will be automated by a smart contract,” Juscutum representatives believe.
Propy also announced agreements with the government of Ukraine and Chinese real estate company Leju Holdings Limited. The agreements will allow international buyers to purchase public lands in Ukraine and private properties in China through Propy, according to the startup’s statement.
Earlier this month, the Texas-based real estate brokerage firm Kuper Sotheby’s International Realty completed the first-ever sale of a real estate property using the popular cryptocurrency bitcoin. The purchase was for a newly-built custom-made home, and the full purchase price was transferred to the seller via bitcoin exchange. The seller then converted the bitcoin payment into U.S. dollars.
Is cryptocurrency part of the future of real estate transactions? Only time will tell.