Buying property with cryptocurrencies is now possible

A first real estate sale is underway between two French residents. An operation made possible by the French bank Delubac & Cie which allows to convert digital tokens into euros.

Some people dreamed of it, a first bank allows it. Buy entirely or finalize the acquisition of an apartment or a house with bitcoin rather than the euro is now possible with the French bank Delubac and Cie. It is practical for those who have risked investing their savings in electronic currency.

Until now, such a transaction has been impossible. Delubac and Cie allows you to convert digital tokens into euros. The establishment has the official status necessary to do so, an authorization issued by the financial and monetary authorities. This is called the “PSAN”, for provider on digital assets.

A first real estate sale is underway. It takes place between two French residents: on the one hand the buyer who wishes to pay part of the good in cryptos and the rest in euros; On the other, a seller who wishes to integrate this type of speculative asset into his heritage rather than traditional currency. The operation is carried out in part in EThere or ether – The second cryptocurrency after Bitcoin – for a total value of the property of around one million euros.

But the value of cryptocurrencies, like Bitcoin, is likely to undergo significant variations. Yet it is not a problem in this kind of real estate operation, because everything is planned. The Delubac Bank has set up a mechanism that meets the volatility of the courses. We can thus take into account the variations which would intervene between the fixed price and the final price paid. Concretely, to protect yourself against a possible drop in the digital token between the payment and the realization of the operation, the buyer of the property pays in crypto a counter-value in euros. At the end of the transaction, if there is a bullshit in cryptos, it will be donated to the buyer of the property.

To follow therefore, because this first case could serve as an example. Especially since taxation is identical to a traditional operation in euros, there are no additional taxes. It remains to be seen whether the cryptos will one day be accepted as a loan guarantee to obtain a banking mortgage. A product called “Crédit Lombard Crypto” could allow it. He only expects a application decree.