South Africans can now purchase real estate using crypto-currency, in what is being dubbed a first for the local property market.
This,
after a solution created by Broll Auctions and Sales, Schindlers
Attorneys and Schindlers Digital Assets combines property, legal and
financial services into a single, streamlined offering.
The
solution allows crypto-currency holders to convert digital assets into
property ownership, while ensuring compliance with the country’s
financial regulations.
The announcement comes as the value of crypto-currencies continues to
rise following the election of Donald Trump as the next US president.
When
campaigning, Trump promised to create a more friendly regulatory
environment for the industry and pledged he will make the US the “crypto
capital of the planet”.
Since Trump became president-elect, the
price of Bitcoin, the world’s most popular crypto-currency, has risen to
a new high of over $90 000 (R1.6 million).
South Africa is
emerging as a leader in adopting crypto-currency as a viable alternative
to traditional payment methods, from grocery purchases to utility
payments.
“At Broll Auctions and Sales, we are excited to be the
first to offer our clients this modern payment solution that aligns with
our commitment to technological innovation in the commercial property
sector,” says Norman Raad, CEO of Broll Auctions and Sales.
“Crypto-currency
adds a dimension to real estate transactions, simplifying the process
and broadening the market beyond traditional investors.”
Schindlers
Digital Assets, a registered financial services provider, facilitates
the conversion of crypto-currency into fiat currency.
Once the
crypto-currency is converted, Schindlers Attorneys handles the
conveyancing and property transfer, ensuring the process remains legally
sound.
“This collaboration is perfectly timed as digital
currencies gain wider acceptance in mainstream financial systems,” says
Candice Dawkshas, CEO of Schindlers Digital Assets.
“With more
investors holding substantial crypto assets, the demand for using these
assets in traditional sectors like real estate has never been higher.”
Maurice Crespi, partner at Schindlers Attorneys, says the partnership is “a landmark moment for
property transactions in South Africa, integrating crypto-currency into
the legal framework governing property purchases”.
The first
opportunity to explore real estate transactions through crypto-currency
will be at a Broll Auctions and Sales auction, in Johannesburg, on 21
November.
Black Friday spending
Meanwhile, local crypto-currency exchanges are expecting a surge in digital currency use on Black Friday.
Luno
this week announced that users can earn crypto rewards when they pay
using Luno Pay at any Pick n Pay store across South Africa.
Rewards
are paid out instantly in Tether (USDT), with up to 10% USDT back when
users pay with USDT and 5% USDT back when they pay with Bitcoin, with a
minimum R100 spend and a maximum 30-day payout of 50 USDT (around R900).
According
to Luno, crypto-currency is rapidly becoming a crucial tool for
financial inclusion in Africa, where there is limited access to
traditional banking services.
In Africa, it notes, crypto has penetrated key markets and become important to many residents’ daily lives.
According to Chainalysis,
stablecoins now account for about 43% of Africa’s total transaction
volume, reflecting a growing demand for efficient financial solutions
and gateways to the global financial system.
Binance points out
that this Black Friday, crypto-enabled payments are expected to be at
the forefront of consumer spending, especially for premium and
collectible items.
The crypto platform notes that with last year’s
trends indicating a strong preference for high-end fashion and dining,
consumers are increasingly adopting crypto wallets and digital assets
for their purchases, reflecting a shift toward mobile-based, seamless
transactions.
In 2023, Binance observed that premium apparel and
collectible items dominated consumer purchases through its gateway,
followed closely by spending in food outlets.
“Black Friday has
always been a timefor high-value purchases, and with crypto transactions
increasing, we’re seeinga new wave of consumers taking advantage of the
ease and security that mobilecrypto wallets provide,” says Hannes Wessels, country manager for Binance.
“This year, we anticipate significant growth, particularly as mobile adoption becomes more widespread.”