London’s wealthiest residents are opting to pay their rent using cryptocurrencies, following the asset class’s soaring mass appeal in recent months.
According to a report by CityAM, affluent residents in the UK’s capital city are opting for digital currencies to pay landlords, and one real estate company describes the trend as “a step into the future.”
Aware of the growing trend, real estate firm Knightsbridge Prime Property confirmed a partnership with virtual currency service provider Bitcashier to facilitate rent payments using the asset class. According to the report, other property firms in the region are shopping for similar deals with cryptocurrency firms to support the needs of their wealthy clientele.
KPP confirmed that one ultra-wealthy client opted to settle the rent for a luxury apartment in Herbert Crescent using Bitcoin (BTC), paying 45,000 pounds per week using digital currency.
“It’s not just a transaction,” said KPP’s social media marketing manager Emma Grubmueller. “It’s a revolution in accessibility, transparency, and opportunity, transforming the landscape of real estate marketing and propelling the industry towards a future of boundless innovation and inclusivity.”
Industry players have cited several benefits associated with making rent payments in cryptocurrencies, including flexibility. Rent payments in BTC can be made using mobile devices and are settled in real time without the hassle of waiting for business hours.
Renters outside the country can leverage DLT’s borderless nature to make payments to landlords, saving a fortune in processing fees. For renters seeking to maintain their anonymity, virtual currencies offer a viable alternative to traditional avenues of rent payment.
The pivot to virtual currencies in London’s property market follows a broad industry downturn, underscored by sky-high interest rates and an unsavoury buyer market. Amid the uncertainty of the real estate market, London’s highest earners are increasing their exposure in the space in a gamble that could reap impressive dividends for investors.
“Many view the current instability as an opportunity to increase their exposure to UK property at an attractive price point and very much value the ability to leverage income in order to fund investment properties,” said one analyst.
BTC’s impressive upward climb
While London’s real estate scene turned to BTC, the asset reached an all-time high of over $70,000 before a price correction forced it back to the $60K mark. As prices hover at $69,000, optimists are eyeing a march toward $100K, buoyed by increasing use cases and an anticipated halving event.
Other virtual currencies are notching new milestones, with Ethereum (ETH) surpassing $4,000 for the first time since 2021. Currently, the global cryptocurrency market capitalization stands at nearly $2.62 trillion, with 24-hour transaction volume pegged at $105 billion.