How Crypto Sector Could Change the Real Estate Investment World

Few months ago, many countries started to create policies that will ensure the control of blockchain-based tokens. Today, these policies and technologies have begun to attract the interest of different companies in the investment sector.

Similarly, there has been a surge in the adoption of the Distributed Ledger Technology (DLT) – a potent tool that controls most transaction at the primary level – particularly, with the invention of various investment initiative – most notably, the real estate investment.

Recently, the regulations against these blockchain-based tokens are targeted at reducing the volatile nature of these coins, especially the ICOs and the STOs.

There are lots of current moves regarding this: Example includes:

  • The council of the European Union met in 2018 to make public some critical decisions that they made at the 13th G-20 meetings which took place in Argentina. A part of these decisions that were made public include the consensus to adopt the crypto and DLT technologies.

Among the countries that pioneered its implementation was Malta. Other countries that followed the same step were Italy, Cyprus, Greece, Portugal, and Spain. Within the blockchain adoption, these countries have agreed to work in unison to promote the global development of blockchain technology.

  • Before the European Union agreement, Malta in July 2019, passed the law to incorporate blockchain and DLT to monitor ICOs and STOs by providing a legal benchmark to control and observe its implementation.

Although some people are working towards creating a standard definition for the various types of tokens, the STOs, which is quite different from other ICOs (as a result of its physical assets backup), can permanently solve the menace of fraud and security, regarding most of the ICOs and BlockChain tokens that we have today.

Fractional Real Estate

Hopefully, Fractional Real Estate through the democratization of access is going to have significant influence towards providing a solution to the liquidity observed among small investors.

Moreover, It is going to allow smaller investors to access other notable class of investments which will no longer have a minimum limit. Therefore, it will reduce the price barrier and create a more secure trade environment for smaller investors.

The Data Factor

Here is another excellent way through which real estate investment has witnessed recent changes. Through the use of DLT technologies, public, state, and government-owned institutions can now have their blockchains for different purposes. As a result, it becomes easy for individuals and corporate investors to access, and it will enhance a reduction in the procedures, and time needed to make transactions.

Universal Regulatory Acceptance  

There are still several challenges these technologies have encountered over the years. Common among them is the issue of universal acceptance. While some countries have decided to adopt the technology, others have kicked against it. For example, India and China banned STOs some years back.

Regardless of this, the use of blockchain-based tokens and DLT is having a remarkable impact on the process of real estate investment globally.


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