South African Company Starts Accepting Cryptocurrency For Rental Deposit

While lawmakers and regulators across the globe are pondering on how to regulate the massively speculative market of cryptocurrency. Big companies are chewing over the matter of whether to accept Bitcoin and other cryptocurrencies as a medium of payment. On the other hand, small firms such as restaurant chains and online businesses are enjoying the crypto craze. One such firm in South Africa deals in property and Real estate– Quorum Holdings, has started to accept cryptocurrency for rental purposes.  

It is the first company in the field of property and real estate to accept cryptocurrency as a medium of payment to pay a rental deposit.

First South African Company to Accept Cryptocurrency

This property company in South Africa is the first to accept cryptocurrency as a mode to seal leases or rental deposits. 

South Africa property companies accept cryptocurrency as rental deposits, Source: Bitcoin.com

This procedure has certain benefits, such as:

  1. Giving cryptocurrency to get property leases will be a kind of beneficiary factor for the occupants as they will be in peace of mind that their digital assets are deposited in safe hands (unless of course, the landlord turns out to be a fraudster).
  2. This is probably going to bring about possible advantages to occupants from an increment in the worth of their cryptocurrency deposits.

The South African Property company — Quorum Holdings is a commercial properties company. Its social media marketing post on Twitter revealed that the brand’s new residential building project in Johannesburg, named Forest Views. The rentals start at just R5350 per month. As per reports, the rental deposit will be held in Luno, South Africa’s largest cryptocurrency exchange platform. The scheme to accept cryptocurrency as a rental deposit was pioneered through this particular project.

The legal counsel of the company– Saul Mayers said, “Depending on how it works, we will expand to other properties in both Joburg and Cape Town.”

Mayer declares that occupants and potential tenants can use bitcoin, Ethereum, and likewise digital assets to secure their rental agreement. 

The concern here lies regarding the volatile nature of cryptocurrency. If the rates of cryptocurrency depreciate, how will the landlord handle the losses? Clarifying the present circumstance, Mayers said the danger with the value instability in the crypto business is consistently there however all additions are for the inhabitant when they leave the home, with the property manager prepared to bear potential misfortunes. The legitimate insight added that the average inhabitants for Quorum Holdings are youthful experts who know about cryptocurrency and digital assets and might need to utilize their holdings as a deposit rather than the standard deposit practice.

Quorum Holdings become the first of its kind to take the initiative to accept cryptocurrency in South Africa

Cryptocurrencies like bitcoin and Ethereum are the oldest cryptocurrencies. Investors in the crypto market have rapidly proliferated but official authorities and institutions haven’t quite accepted them because of the risks they incur. Cryptocurrencies are highly speculative; their rates may vary vastly overnight. At this moment, the Bitcoin rate is running at $45,712 and Ethereum at $3,048.

Tesla, Apple, Microsoft &c. are some of the few companies that showed interest in making Bitcoin a legit medium of payment.

In South Africa, Quorum Holdings is the pioneering company to accept bitcoin and other cryptocurrencies as rental deposits. It may inspire many other commercial brands to accept cryptocurrency as well.

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