While most large corporations and investors debate whether the lucrative cryptocurrency trade needs legislative regulation, numerous small businesses, such as restaurants and online stores, have already begun accepting bitcoin payments. A South African property company has become the first in the country to accept cryptocurrencies as a kind of rental deposit. Tenants are likely to gain from an increase in the value of their crypto deposits as a result of this.
Quorum Holdings says it is testing the new business model at Forest Views, a residential project in Johannesburg. Rentals there start at R 5,350 per month (approximately R 26,600). The rental deposit will be held in Luno, the largest cryptocurrency exchange in South Africa.
“Depending on how well it works, we will expand to other sites in both Joburg and Cape Town,” said Saul Mayers, the company’s legal counsel.
Tenants can protect their leases with Bitcoin or Ethereum, according to Mayers. Using cryptocurrencies will also provide tenants with some peace of mind, as they will know that their funds are being handled on a secure and reliable platform.
But what about price fluctuation? It’s fine till the cryptocurrency’s value rises, but what happens if the price falls? Mayers explained the situation by saying that while the danger of price volatility in the crypto industry is always present, all gains belong to the renter when they leave the property, with the landlord willing to bear any losses.
Quorum Holdings’ typical tenants, according to the legal counsel, are young professionals who are conversant with bitcoin and may prefer to use their holdings as a deposit instead of the traditional deposit method.
The most popular cryptocurrencies are Bitcoin and Ethereum. Despite the fact that the number of people trading in them has reached an all-time high, just a few institutional investors, including MicroStrategy and Tesla, have shown interest so far.
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Also read: Singapore digital securities platform has tokenized a US real estate fund
