South Africans can now purchase real estate using crypto-currency, in what is being dubbed a first for the local property market.
This, after a solution created by Broll Auctions and Sales, Schindlers Attorneys and Schindlers Digital Assets combines property, legal and financial services into a single, streamlined offering.
The solution allows crypto-currency holders to convert digital assets into property ownership, while ensuring compliance with the country’s financial regulations.
The announcement comes as the value of crypto-currencies continues to rise following the election of Donald Trump as the next US president.
When campaigning, Trump promised to create a more friendly regulatory environment for the industry and pledged he will make the US the “crypto capital of the planet”.
Since Trump became president-elect, the price of Bitcoin, the world’s most popular crypto-currency, has risen to a new high of over $90 000 (R1.6 million).
South Africa is emerging as a leader in adopting crypto-currency as a viable alternative to traditional payment methods, from grocery purchases to utility payments.
“At Broll Auctions and Sales, we are excited to be the first to offer our clients this modern payment solution that aligns with our commitment to technological innovation in the commercial property sector,” says Norman Raad, CEO of Broll Auctions and Sales.
“Crypto-currency adds a dimension to real estate transactions, simplifying the process and broadening the market beyond traditional investors.”
Schindlers Digital Assets, a registered financial services provider, facilitates the conversion of crypto-currency into fiat currency.
Once the crypto-currency is converted, Schindlers Attorneys handles the conveyancing and property transfer, ensuring the process remains legally sound.
“This collaboration is perfectly timed as digital currencies gain wider acceptance in mainstream financial systems,” says Candice Dawkshas, CEO of Schindlers Digital Assets.
“With more investors holding substantial crypto assets, the demand for using these assets in traditional sectors like real estate has never been higher.”
Maurice Crespi, partner at Schindlers Attorneys, says the partnership is “a landmark moment for property transactions in South Africa, integrating crypto-currency into the legal framework governing property purchases”.
The first opportunity to explore real estate transactions through crypto-currency will be at a Broll Auctions and Sales auction, in Johannesburg, on 21 November.
Black Friday spending
Meanwhile, local crypto-currency exchanges are expecting a surge in digital currency use on Black Friday.
Luno this week announced that users can earn crypto rewards when they pay using Luno Pay at any Pick n Pay store across South Africa.
Rewards are paid out instantly in Tether (USDT), with up to 10% USDT back when users pay with USDT and 5% USDT back when they pay with Bitcoin, with a minimum R100 spend and a maximum 30-day payout of 50 USDT (around R900).
According to Luno, crypto-currency is rapidly becoming a crucial tool for financial inclusion in Africa, where there is limited access to traditional banking services.
In Africa, it notes, crypto has penetrated key markets and become important to many residents’ daily lives.
According to Chainalysis, stablecoins now account for about 43% of Africa’s total transaction volume, reflecting a growing demand for efficient financial solutions and gateways to the global financial system.
Binance points out that this Black Friday, crypto-enabled payments are expected to be at the forefront of consumer spending, especially for premium and collectible items.
The crypto platform notes that with last year’s trends indicating a strong preference for high-end fashion and dining, consumers are increasingly adopting crypto wallets and digital assets for their purchases, reflecting a shift toward mobile-based, seamless transactions.
In 2023, Binance observed that premium apparel and collectible items dominated consumer purchases through its gateway, followed closely by spending in food outlets.
“Black Friday has always been a time for high-value purchases, and with crypto transactions increasing, we’re seeing a new wave of consumers taking advantage of the ease and security that mobile crypto wallets provide,” says Hannes Wessels, country manager for Binance.
“This year, we anticipate significant growth, particularly as mobile adoption becomes more widespread.”
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