Is Using Cryptocurrency for Large Real Estate Purchases Becoming a Reality in Latin America?

Photo courtesy of Gaucho Holdings

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Cryptocurrency adoption as legal tender is an evolving discussion and, in some cases, a big decision for some countries. El Salvador recently became the first in Central America to adopt Bitcoin (BTC) as its national tender. But several other Latin American countries are ramping up their volumes of exchange, including Argentina, Venezuela and Colombia.
Argentina is dealing with inflation and looking for solutions. According to crypto and blockchain company Chainalysis, Argentina has become 1 of 9 countries with the highest adoption of cryptocurrencies. But the country is also looking at cryptocurrencies as a possible solution to its own recurring currency issues and a 50% annual inflation rate.
The Buenos Aires office of New York-based marketing communications agency Wunderman Thompson — owned by WPP PLC WPP — has found in a study that ⅔ of Argentines investing in crypto are doing so solely to find a way to protect their savings.

The country's largest futures market is now pointing to becoming the first Latin American exchange to launch regulated Bitcoin futures. Matba Rofex S.A. (MTR.BA), a local Argentinian exchange, has announced a proposal sent to the country’s securities regulator to launch Bitcoin futures in Argentine pesos. The motor for launching new futures will be the Bitcoin price index, which publishes the asset’s price in real-time in Argentine pesos, based on 12 different local crypto exchanges.

Bit by bit, companies and businesses accepting cryptocurrencies are beginning to appear, but the question for many countries looking at cryptocurrency adoption is how quickly it will be adopted and used in large transactions.

Gaucho Group Holdings VINO, which sources and develops opportunities in the country’s luxury real estate and consumer marketplace, has recently announced a move that answers the question with — “now.” Gaucho has completed its first lot sale exclusively using cryptocurrency at its luxury residential vineyard real estate project, Algodon Wine Estates.

"The acceptance of digital currency as a medium of exchange continues to gather momentum as, among other causes, investors across the globe witness the impact of central bank actions on currency valuations and as a result are seeking alternative stores of value,” Scott Mathis, CEO and Chairman of Gaucho Group Holdings said. “Investors are beginning to recognize the opportunity for diversification that luxury real estate in Argentina presents.” 

Gaucho’s Algodon Wine Estates is listed as a 4,138-acre world-class wine, wellness, culinary and sport resort, and luxury real estate development located in the rolling hills of the Sierra Pintada Mountains in San Rafael, Mendoza. More than 100 vineyard lots overlook the Algodon golf course, and the estate wines have won multiple awards in international tasting competitions.

Gaucho says it has opened up real estate opportunities at Algodon in what they believe will be the first of many cryptocurrency transactions as investors look to move their holdings into hard assets worldwide.  Gaucho is betting on a resurgence in interest from traditional investors and luxury buyers emerging from the global pandemic. 

For more information on Gaucho Holdings, visit www.gauchoholdings.com.

The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.