{"id":1492,"date":"2021-06-24T11:00:18","date_gmt":"2021-06-24T15:00:18","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1492"},"modified":"2024-04-25T23:20:00","modified_gmt":"2024-04-26T03:20:00","slug":"blockchain-is-now-legal-tender-in-el-salvador-real-estate-investors-take-note","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/blockchain-is-now-legal-tender-in-el-salvador-real-estate-investors-take-note\/","title":{"rendered":"Blockchain Is Now Legal Tender In El Salvador. Real Estate Investors, Take Note."},"content":{"rendered":"\n
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June, 2021<\/strong> \u2014 As Deeds.com<\/em> readers know, we\u2019ve\nbeen watching the steady emergence of blockchain for real estate applications.\nBlockchain, which was introduced to the world through Bitcoin in 2009, is here\nto stay. How can we say so? It\u2019s increasingly viewed as a change agent in the\nway business is done. <\/p>\n\n\n\n

Case in Point: El Salvador, June 2021<\/h2>\n\n\n\n

Cryptocurrency has just reached a new milestone, becoming a legal tender in El Salvador. To underscore the intent to make bitcoins more like a currency<\/a> than a taxable asset, President Nayib Bukele said transactions could occur without being subject to capital gains tax. On the 9th of June, 2021, the president tweeted about the country\u2019s official recognition of Bitcoin: <\/p>\n\n\n\n

The #BitcoinLaw has been\napproved by a supermajority in the Salvadoran Congress. 62 out of 84 votes!\nHistory<\/em>! #Btc<\/em><\/p>\n\n\n\n

Bukele has replied to concerns that cryptoassets can be used by criminals, observing that criminals trade in U.S. dollars and other assets as well. The president also tweeted<\/a> a rebuttal to the objection that cryptocurrency relies on coal-based electricity: <\/p>\n\n\n\n

I\u2019ve just instructed the president of LaGeo (our state-owned geothermal electric company), to put up a plan to offer facilities for #Bitcoin<\/a> mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos. This is going to evolve fast! <\/em><\/p>\n\n\n\n

El Salvador will offer citizenship to those who have\ninvested in at least three bitcoins.<\/p>\n\n\n\n

Note:<\/em><\/strong> Bitcoin with a capital B is usually\nreserved to mean the platform, whereas a bitcoin with a small b is the\ncryptoasset itself. BTC is the abbreviation for bitcoin traded on an exchange.<\/p>\n\n\n\n\n\n\n\n

How Bitcoin Acceptance Could Impact Real Estate Investing<\/h2>\n\n\n\n

This month\u2019s news from Central America could signal the\nstart of a domino effect for emerging economies. It is certainly one of the\nproofs emerging this year that blockchain-based assets are already a very big\ndeal. Given the massive international real estate market, we expect crytoassets\nto touch the property sector in multifaceted forms. Some have yet to be\nimagined.  <\/p>\n\n\n\n

One way blockchain enables a digital real estate market is\nthrough tokenization<\/em>. To tokenize a physical asset means to create digital\nshares on a blockchain. Then, the selected platform can hold documents and process\ntransactions. It can even list a property.<\/p>\n\n\n\n

With a digital real estate market, multiple parties can\ninvest in fractions of one asset. Square feet, for example, can become shares.\nOnce a property is divided into shares, the holders security tokens are\ndigitized for the blockchain. Unconnected investors then own a parcel of real\nestate, with each holding a digital key to their shares, voting on decisions,\nand accruing returns. <\/p>\n\n\n\n

Optimally these would be available to small and major\ninvestors alike. Today, there are a few real estate tokenization firms helping\ntech-savvy investors. Here are a few groups now working in this area:<\/p>\n\n\n\n