A London developer is thought to be the first landlord in England to accept deposits and rental payments in Bitcoin, a virtual currency.
The developer is the landlord of ‘The Collective,’ a co-living development aimed at young, professional tenants and international students who rent private bedrooms but share communal areas such as kitchens, gyms, cinema rooms and roof terraces.
Other landlords have been prepared to accept deposits in Bitcoin, but until now, rental payments have been requested in Sterling. The London developer believes it will be a popular move with foreign students who will be able to avoid paying high international transfer fees.
Bitcoin was invented by Satoshi Nakamoto in 2009. It is a cryptocurrency, or a completely virtual coin, that does not require a bank to move or store it. You keep it in a virtual ‘wallet’ and use it to purchase goods and services online. You can also save it, in the hope that the value will increase.
Bitcoin transactions are instant, don’t require payment systems (such as VISA or MasterCard) and can be tracked via their unique codes on a central ledger. With its value based on supply and demand, Bitcoin can be volatile, but has been popular in China where the Government has imposed strict limits on the amount of local currency that is permitted to leave the country.
Whether this becomes a more widely adopted strategy remains to be seen, but for now, watch this space.