Switzerland records first real estate transaction on Blockchain
While banks are not prepared to accept cryptocurrency in payment for mortgage, it appears that real estate agents may not be averse to accepting cryptocurrencies in exchange for bricks and mortar.
The first real estate transaction has been completed in Switzerland where the blockchain-backed real estate transaction took place. The property was sold for the amount equivalent to 3 million Swiss Francs (approximately USD 2.98 million). The transaction was conducted by 3 companies Elea Labs Ltd, Swiss Crypto Tokens Ltd, and Blockimmo and was used to purchase a restaurant and 18 apartments.
The property has now reportedly been tokenized and the worth of the property is represented on the Ethereum blockchain in the form of tokens. CryptoFranc (XCHF), Swiss Crypto Tokens’ stablecoin which is pegged to the Swiss Franc was used to support the transaction in order to avoid the risk of price fluctuations.
Elea Labs' CEO of the Switzerland-based company, Martin Schnider, stated that Elea Labs provided the real estate data of the property (or 'Property DNA') which will enable transparent digital due diligence and simplify, accelerate, and reduce the cost of processes across the entire real estate industry.
Switzerland is showing its support of the boom of the cryptocurrency era and the crypto community could not be more excited about it. To have real estate's recorded value in cryptocurrency is evidence of the transition that is taking place from paper money to digital money.
Switzerland is considered a crypto-friendly country because of its positivity towards the technology and it is believed that this is one of many tokenized properties on the blockchain market to come. Blockimmo Ltd believes that this transaction is just the beginning and that we should expect to see more properties sold for cryptocurrency in the year to come.
The best part of Switzerland adopting the use of cryptocurrency for common transactions is that it is a well-respected country which people look up to, especially in the financial sector. The crypto era needs countries like Switzerland and America to pave the way for the future generation of cryptocurrency.