The Latin American real estate market is now focusing on the use of cryptocurrencies to pay for large properties
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Adopting cryptocurrencies as legal tender is an evolving discussion and, in some cases, a major decision for some countries. El Salvador recently became the first country in Central America to adopt Bitcoin (BTC) as its national currency. But several other Latin American countries are increasing their trade, such as Argentina, Venezuela and Colombia.
Argentina is dealing with inflation and looking for a solution. According to cryptography and blockchain firm Chainalysis, Argentina has become one of the nine countries with the highest cryptocurrency adoption rates. But the country also sees cryptocurrencies as a possible solution to its own recurring currency problems and 50 percent annual inflation. WPP PLC
New York-owned marketing communications agency Wunderman Thompson’s Buenos Aires headquarters
, found in a study that ⅔ of Argentines investing in cryptocurrencies did so simply to find a way to protect their savings.
The country’s largest futures exchange now aims to be the first in Latin America to launch regulated bitcoin futures. Argentina’s local stock exchange Matba Rofex SA (MTR.BA) has announced a proposal submitted to the country’s securities regulator to launch bitcoin futures in Argentine pesos. The engine launching the new futures will be the Bitcoin Price Index, based on 12 different local cryptocurrency exchanges, publishing asset values in real-time in Argentine pesos.
Gradually, companies and businesses that accept digital assets are starting to emerge, but for many countries looking to adopt cryptocurrencies, the question is to what extent they will be adopted and used for large-scale transactions.
Gaucho Group Holdings
The company that seeks and develops opportunities in the country’s luxury real estate and consumer markets recently announced an initiative to answer the “now” question. Gaucho has completed the sale of its first cryptocurrency-based parcels of land in its luxury residential vineyard real estate project, Algodon Wine Estates.
Chief Executive Officer Scott Mathis said: “The acceptance of digital currencies as a medium of exchange continues to grow, with investors around the world witnessing, among other things, the impact of central bank actions on currency valuations and seeking a store of value as a result. “President of Gaucho Group Holding Company. “Investors are starting to recognize the opportunities for diversification in Argentina’s luxury real estate sector.”
Algodon Wine Estates is listed as a 4,138-acre world-class wine, wellness, culinary and sports resort and luxury real estate development nestled in the foothills of the Pintada Mountains in Mendoza’s San Rafael Mountains. Over 100 vineyard lots overlook Algodon’s golf course, and the estate’s wines have won awards at international tasting competitions.
Gaucho claims he has opened up real estate opportunities in Algodon, which they believe will be the first of many cryptocurrency deals as investors look to move their holdings into physical assets around the world. Gaucho is betting on a revival of interest from traditional investors and luxury buyers emerging from the global pandemic.