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Property Owners Who Purchased Interests with Cryptocurrency Are Also Being Paid
Dubai: With the value of Bitcoin and Ethereum constantly fluctuating. Property buyers in Dubai are increasingly turning to stablecoins to complete their deals. Stablecoins, because of their structure, provide considerable stability when compared to other crypto choices. According to market sources, sellers and buyers should take caution while engaging in crypto transactions due to continuous volatility. “A growing number of consumers are converting their existing crypto-based investments to real estate”. Which is increasing the volume of property transactions,” stated Firas Al Msaddi, Owner of FAM Properties.
“Both the buyer and the seller should use reputable OTC (Over the Counter) platforms and brokers to ensure that the bitcoins being traded are genuine.” By cashing out, the property owners ensure that the value of existing holdings is not held captive by the volatility. That Bitcoin and other cryptocurrencies are experiencing. That is where Stablecoins come into play.
Pursuing ‘Stability’
The USDT and USDC are the most commonly utilized stablecoins. “They are favored because of their set value against the dollar,” according to Al Msaddi. Unlike Bitcoin and other cryptocurrencies, Stablecoin values are constantly bind to a fiat currency like the US dollar. An exchange-traded commodity such as gold, or a cryptocurrency.
Currently, more developers & property owners are eager to accept cryptocurrency payments. In addition, a legislative framework to facilitate such transactions is in the works. Until that time, all cryptocurrencies only pay for transactions through OTC exchanges and in cash.
Bitcoin was the primary crypto medium for buying property here until it crashed to its current value of $25,000 or more. It did make sense, with Bitcoin prices firmly above $50,000 before rocketing to $68,000 in November of last year. The cryptocurrencies, especially the bitcoin, used to sign and seal the purchase of the entire property. Since then, the price condition for Bitcoin and other crypto’s has become very sticky.
“With more interest rate hikes on the road, and investors all over the world winding down, it’s a good time to buy. Or cutting their holdings in greater risks crypto’s, it won’t be easy for Bitcoin,” a property expert predicted.
Await the Complete Implementation of the Regulations
The regulations that will serve as the foundation for the UAE’s transformation to a digital-driven economy are in the works, and this includes cryptocurrency transactions. “The UAE Central Bank has released regulations addressing ‘Stored Value Facilities.’ Which include crypto, as well as rules for retail payments that consider their use of cryptocurrencies and digital assets,” stated Samir Kanaan, Portfolio Manager of Kanaan Advocates and Law Consultants.
The Dubai government recently established the VARA (Virtual Assets Regulatory Authority) in the Dubai World Trade Centre Free Zone to regulate virtual assets in the emirate. Various free zones, like the DIFC, ADGM, and DMCC, have also taken steps to create legal infrastructure. In addition, license the trade of virtual assets and currency in their respective free zones.
“We have seen several firms change their systems to accept cryptocurrency payments. Nonetheless, when compared to the market’s overall size, the number of early adopters is small. One of the key reasons is that the technology is still unfamiliar to many people, and the regulatory system is still in its infancy.”
