Bitcoins, the digital currency, the crypto currency have been making news for some time now. Investors are looking up to it for some lucrative gains and in some countries it has also been traded for real estate. Of late, there has been news of buying investment property in US and Dubai using bitcoins. And some developers in India are also looking up to this form of trade.But, can bitcoin impact the real estate industry in India. At a time, when the central government has introduced policies to bring transparency in the real estate sector, this seems a farce. With RERA (Real Estate Regulatory Act), GST and now Benami law, real estate industry is all set to witness an era of pellucidity. But, bitcoin will only keep the past opaqueness in place as its origin is not established in most cases. So, the introduction of bitcoin in Indian realty sector seems quite far-fetched.
Along with the transparency factor, bitcoin as a currency is not recognized by the government of India or the Reserve Bank of India. Though the Ministry of Finance has admitted that there has been “notable growth” of bitcoins market in India, but it has still not recognized it. Likewise, the Reserve Bank of India has also cautioned on its use time and again. So, trading with bitcoin for real estate in India will be a form of black market as the state still does not recognize it. Bitcoin is not a legal tender in India and is far from becoming one as there is no transparency on the source of funds. And for the RBI to making it a legal tender it is essential that the source of buying bitcoin is established. However, in the case of bitcoins it is at the discretion of the individual whether the identity should be established or not.
Moreover, even if we consider a scenario, wherein the government recognizes bitcoins as a legal tender, its use in real estate transactions will be difficult. On every property transaction, there are statutory taxes levied by the government of India and these taxes are paid in Indian rupee otherwise the transaction is not considered legal. In addition, the market price of a property is evaluated in Indian rupee per square foot. So, to evaluate this price in any other currency or by recognizing the cryptocurrency market, some other method will have to be established.
Other than these factors, the Indian financial institutions are conservative by nature. This also makes it difficult for any crypto currency to become a part of the Indian economy. Moreover, the biggest challenge that remains is tracking the source of bitcoin investment. Until, the source of this currency is not traceable and regulated, being a part of Indian financial system and real estate market in India, seems quite far-fetched.
If there are any developers or property dealers who are already offering you investment in the form of bitcoins, then we suggest you to take an informed decision, unless the government makes it a legal tender. We at Valmark follow every legal term when it comes to doing any property transaction. There is a RERA number for our ongoing projects and GST guidelines are also followed. So, follow the legal form of transaction when it comes to buying a home for living or investment. Looking for investment property with transparent home deals, then trust Valmark. You can find all the details online, as well and plan a site visit as per your convenience. We maintain transparency online and offline. Valmark is a name, you can trust for one of your biggest and most valuable investment.