Damac Properties, a Dubai developer, has stated that it will accept some cryptocurrencies for property purchases to provide greater flexibility to investors.

According to the creator, Bitcoin and Ethereum holders would be able to convert to currency and sell the property. Fiat money is a currency issued by the government that does not have any backer by a commodity.

The move by Damac to provide cryptocurrency to its customers is part of the new economy initiative for younger generations and the future of the real estate industry, according to Ali Sajwani.

Providing yet another transactional mode is exciting, and they are pleased to acknowledge the value this technology delivers to their clients.

According to the corporation, the move would strengthen efforts to give ease and flexibility to property investors. As part of its efforts to regulate the sector, Dubai has accelerated the use of digital currencies. The emirate passed a new law to control virtual assets last month.

The Dubai Virtual Asset Regulation Law aims to provide an advanced legal framework to safeguard investors and offer worldwide standards for virtual asset industry governance in the emirate, according to Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai.

Cryptocurrencies such as Bitcoin and non-fungible tokens are examples of virtual assets (NFTs).

Bitcoin price – 1 year

The new law formed the Dubai Virtual Asset Regulatory Authority (VARA) to govern the industry throughout the emirate, including special development zones and free zones, excluding the Dubai International Financial Centre.

Following the news, Binance, the world’s largest cryptocurrency exchange, and FTX Europe obtained licences to operate virtual assets in Dubai.

Bybit, a cryptocurrency exchange, also announced that it had gained authorisation to do virtual asset business in Dubai and establish its global headquarters there. BitOasis, one of the first cryptocurrency exchanges to open in the UAE, said that it, too, had filed to VARA for a new licence.

Damac Group, the parent firm of Damac Properties, also said this week that it aims to spend $100 million in the metaverse to develop “digital communities.”

According to the corporation, the project is part of its desire to expand into digital assets and NFTs.

The property industry in Dubai has already seen the introduction of cryptocurrency.

According to its website, Fam Homes sold over 400 properties for Emaar in Dubai Creek Harbour using Bitcoin last year.

Source: The National News