Bill Clinton, Tony Blair, and Andrew Yang made appearances at the Crypto Bahamas conference this year. The blockchain company FTX, one of the event’s hosts, boasts Tom Brady in an Ambassador role. Co-hosting the event was SALT, the geopolitical thought leadership forum.
The Bahamian Prime Minister, Philip Davis, opened the event. Clearly, cryptocurrency is welcome in The Bahamas today.
The country regulates digital assets with a set of laws that includes the Digital Assets and Registered Exchanges Act of 2020. Bahamian residents can pay their taxes with digital assets. And the Bahamian digital coin, the Sand Dollar, is a leader among central bank digital currencies.
What are people buying in The Bahamas with their digital assets?
Bahamian Real Estate Is in the Spotlight
A Mediterranean-style waterfront mansion with two private guest cottages recently entered the market for an asking price of more than $15 million — in cryptocurrency or cash. The home is located in the fashionable Ocean Club Estates. This is happening amidst a wave of demand for ultra-posh real estate on the island nation over the course of the past two years. Another key part of the context is the rising profile of digital assets.
Real estate company Coldwell Banker Bahamas says its clients are asking about buying homes with digital assets, and there are now plenty of sellers willing to accommodate these buyers. The agency notes that the risks of doing business with digital assets is lowered by the regulatory regime.
Coldwell Banker Bahamas works with various partners to facilitate transactions involving crypto payments. These partners include escrow companies that are used to handling digital assets as payments.
The agency further points out that its professional colleagues apply know your client (KYC) and anti-money laundering (AML) safeguards on all aspects of the financial transactions. It calls its process “seamless, compliant, transparent and secured from end to end.”
The agency also points out that more than 15,000 companies, including household names like AT&T and Microsoft, are now accepting digital assets. Therefore, “it may only be a matter of time” until it becomes “commonplace for real estate deals.”
Regardless of the ups and downs in the cryptocurrency markets, blockchain technology continues to gain adherents worldwide. And blockchain, according to Coldwell Banker Bahamas, has much to offer the real estate market on the islands.
What is blockchain? It’s the backbone of cryptocurrency transactions. It keeps the all data about claims and transactions as a single, immutable source of information. Cryptocurrency is named for the cryptography that keeps online transactions secure and indelible. The blockchain’s security is based on the constant duplication and distribution of data through a large computer network. Through this unremitting verification process, blockchain technology protects data from those who would cheat the people exchanging assets.
So, Is Blockchain Technology the Future of Titles and Transactions?
Real estate transactions could benefit from a simpler, speedier process. The need for efficiency is particularly high when the purchase crosses borders or businesses and shared investments are involved. In the Bahamas, these seem like pretty big plusses for blockchain.
Digital assets can streamline administration of activities like title searches, title transfers, and the recording of legal instruments. That’s also a plus for blockchain.
Granted, not everyone is convinced of the benefits. There are plenty of blockchain critics. That’s a good thing. Critics ask important questions about this emerging method of doing business in traditional industries. So far, as the answers are worked out in places like The Bahamas, El Salvador, and Argentina, blockchain is having some remarkable impacts on the global real estate industry.
Nina Bambysheva for Forbes: Crypto Bahamas Kicks Off as Country Solidifies Plans to Become “Leading Digital Asset Hub” Amidst Market Uncertainty (Apr. 27, 2022).
Liz Lucking for Mansion Global: A Lavish $15.8 Million Oceanfront Mansion in the Bahamas Is Headed to the Market – And Crypto Buyers Are Welcome (Feb. 7, 2022).
Bobby Chen for Coldwell Banker Lightbourn Realty’s Coldwell Banker Bahamas Real Estate Blog: The Future of Cryptocurrency in Real Estate is NOW! (Aug. 23, 2021).
Ashley Bethel for Better Homes and Gardens Real Estate: Blockchain in Bahamian Real Estate (Sep. 10, 2021).
Photo credit: yrolle, via Pixabay.