This article by OPP Connect editor Adrian Bishop is reposted with permission from OPP Connect.
An investment company says it is the first brokerage firm to accept bitcoin for London property.
Bitcoin as global currency image via Shutterstock.
The cryptocurrency can also be used to pay for a property-for-citizenship scheme in the Federation of St. Kitts and Nevis, through one consultancy.
Richard Mathieson, managing director at Cai-Capital Ltd., in Gloucestershire, is helping two Hong Kong buyers purchase a £1 million home and a £750,000 flat in London using the digital currency, the South China Morning Post reports. One bitcoin is currently worth around £350 (U.S. $600).
Cai-Capital Limited says, “Due to our innovative approach to business and by utilizing the latest systems and technology available, we can also offer our clients the option of payment by bitcoin and other cryptocurrencies.”
Additional charges apply for this service, the company’s website notes.
“Cai-Capital is proud to announce that we are the first U.K. property company to accept bitcoin and other cryptocurrencies.”
Mathieson says, “We believe that [China] could be a large market, simply because of the [country's mainland] currency restriction.” China currently generates around 10 percent of the global bitcoin market as well as two of the top three world exchanges (BTC China and OKCoin).
Cai-Capital uses Acquire CC Exchange, which is registered in the Channel Islands, to convert bitcoin to sterling and pay the property developers.
Cai-Capital says the system is secure for property buyers, as it creates a digital wallet that is stored offline and encrypted and password-protected.
The firm’s directors are traveling to Hong Kong this month to meet with current clients and potential new ones to discuss investment options.
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security, which makes it difficult to counterfeit, says Cai-Capital. The bitcoin is the one that is most widely known.
Cryptocurrency is not issued by any central authority or bank and therefore, is immune to government control or legislation, it adds.
Bitcoin are also being accepted to pay for citizenship in St. Kitts and Nevis in the Caribbean through the Citizenship by Investment program.
Those investing at least $400,000 on real estate — or the equivalent in bitcoin — can obtain citizenship through PassportsForBitcoin.com, run by International Investments & Consulting Ltd.
“Many countries have economic citizenship programs with varying degrees of investment amount, investment horizon, investment type, residency requirement and personal information disclosure. However, the program offered by the country of St. Kitts is the fastest, easiest and most affordable of any,” it says.
Bitcoin is a payment system introduced as open-source software in 2009 by developer Satoshi Nakamoto.