Changing the way we live: Digital Currencies and Real Estate

Changing the way we live: Digital Currencies and Real Estate

Makram Hani on #cryptocoffee alongside Filipe hosted by Utrust

Q1: Where are you typing from? Tell our followers a little bit about what you do?

A: Makram Hani
I am typing from my garden in Dubai. I am a serial entrepreneur with businesses in Realestate with armsmcgregor being my first company, Media, tech ventures and consultancy. I believe technology is the biggest infant which is growing to add additional impact on all aspects of our lives. tokenization, and supporting tech will have a major role in streamlining transactions in multiple industries one of which is real estate. The impact of Covid19 was the steroid to get things moving faster in that sphere as governments, organizations, and people needed safe medium and tools to keep things running.

A: Filipe
Typing from our decentralised virtual office space. Physically in Portugal while cov-19 lockdown endures

Q2: When did your interest in this new technology begin?

A: Makram Hani
My interest in this technology started 4 years ago (although I had very little understanding of any tech). I started working on some tech ventures and learned as we go. As I wrote few years ago on https://makramhani.com, agriculture and tech will be the main sustainable growth areas for the coming decade. And here we are Agriculture and tech are taking center stage.

Q3: RealEstate and DigitalCurrencies are quite different fundamentally. How they complement each other as assets in your opinion?

A: Makram Hani
As our whole world go digital and the digital infrastructure grows and matures especially with the Corona effect, we will see few digital elements in every real estate transaction. The transaction logistics are going digital, the indirect transaction supporting elements similar to power of attorneys are going digital, and there is nothing to stop us from paying for real estate using a digital currency. Digital currencies will evolve and may become a certain store of value however for now they are at least a means of transaction as long as we can agree they are an acceptable unit of value. Every digital currency needs a use_case and bilateral agreements similar to the one between armsmcgregor and utrust allow this to happen. On the other hand Real estate markets are always hungry for new money in whatever form it arrives. As long as we can simplify the route in and out, allow it to be structured and support it to be regulated we are on the right track.

A: Filipe
Yes, they are quite different assets in terms of risk profile, liquidity and more. One solid, steady and traditional. Other dynamic and cutting-edge. Due to these differences they complement each other quite well in a balanced investment portfolio.

Q4: How can digitalcurrencies facilitate realestate purchases?

A: Makram Hani
Borderless low_cost are two characteristics of a Cryptocurrency transaction. Globally distributed, high_value are two characters of realestate transactions. The match can’t get any better. a small percentage of savings is a big quantity of money usually in our business. Nevertheless the market in the future will start thinking of digital currency similar to how the market perceives Fiat currencies today, “Normal”. So in a few years we may never need to ask this question as every fiat currency may need to have its digital form.

A: Filipe
For buyers, a whole new way to spend some of their cryptocurrency savings and stablecoins into a new complementary asset.
Due to their digital and universal nature, I believe cryptocurrencies can help facilitate many cross-border deals for realtors. Enabling frictionless purchases for a wider audience, increasing the speed of deal flows and increasing transactional efficiency.

Q5: Do you think this is an “underserved” market opportunity? If so, how “big” do you think the opportunity is?

A: Makram Hani
Underserved, yes describes everything digital currency today and everything proptech, which is why at armsmcgregor we are putting a great effort into this area. Hundreds of Billions of Dollars in property value is expected to be transacted, or shall i call it hundreds of thousands of bitcoins. As soon as our structure and similar structures are accepted and adopted, it just becomes a matter of how far the digital currencies penetrate and the total market cap.

A: Filipe
Absolutely, this still an underserved market. A multi-billion dollar opportunity – considering the growing total value of real estate purchases, positive outlook on crypto markets, rise of stablecoins, Libra_ , DCEP & post-pandemics economic outlook.

Q6: Which other sectors do you believe would benefit from digitalcurrencies and blockchain technology?

A: Makram Hani
Which sectors benefit from the USD or Euro today. Every sector we know benefits from the growth and maturity of the digital currency market. Offerings similar to stablecoins would allow an impact to a market not seen before. at the same time we will still look forward for future evolution as we are still an infant and have a giant growth and transformation opportunity ahead. Although there are some sectors which will benefit more than others due to their need of additional efficiency and speed.

A: Filipe
Any sector that has an inherently digital frontend and requires a secure transaction of value between both parties. ONG donations specially come to mind.
As for non-financial applications, authentication of physical or digital assets, tracing of agricultural products, medicine.

Q7: In the age of a global pandemic, will demand for realestate continue to grow as a safe haven?

A: Makram Hani
Covid19 is part of the global scene however is not the global scene. The World has much bigger than Corona building up for years and currently waiting around the corner. I have been writing about this for years now, starting with my article headlined “Playing the game no one understands, Capitalism on the verge of a technical gamble.” Value of assets, currency and all kind of instruments will change. Realestate is not one sector. Each sector of real estate will be impacted in a way. Some sectors will evolve and live good days other sectors will suffer and change forever. Realestate is an asset with intrinsic value. With changes to returns comes also value changes. Realestate will stay a great hedge against inflation and a better one against hyperinflation. Some sections will evolve and beat stagnation. In the coming few years accompanied by Proptech on steroids we will see a new type of realty developed and transacted.

A: Filipe
As in any crisis there is a tendency divest into save haven assets to hedge against a downturn. This can take many forms and realestate is certainly one. It will persist as part of the economic cycle and underlying uncertainty over the equity markets, fiat currency & inflation.

Q8: What about digitalcurrencies? Will its “use” in the market widen and grow as well?

A: Filipe
Yes, the market outlook is vibrant for cryptocurrencies.
From commodity volatile assets and future store of value like coins BTC and ETH, to payment-oriented stablecoins (USDT, upcoming Libra_ , DCEP, e-Euro and digital dollar) we are reaching towards mainstream adoption.

A: Makram Hani
Maybe it won’t be the Bitcoins Ethereum and Ripple of the world, it may also not be the stablecoins of the world however every country and maybe organization of a size will have a currency. Digital will soon be what currently FIAT is.

Q9: Is this the right time to purchase realestate? Your company primarily serves Dubai – so we ask: why Dubai?

A: Filipe
Due to economic market uncertainties, this can be a great time to buy realestate. As for Dubai , it’s a prime location in the Middle East. A top-tier developed & connected hub of business and trade, with a proactive government. A great location IMO.

A: Makram Hani
If purchasing the right property and having a scientific approach every time is the right time to purchase Realestate. Armsmcgregor we believe that step entry, taking a balanced approach, leading a well diversified portfolio you would do good in every market. Hold assets that offer intrinsic value and hold them in cities that have the energy of Dubai a Vibrant multicultural proactive competitive city. As we said buy were people wish to live. Dubai is a city with a proactive government, and highly competitive developed government sectors.

Dubai is a regional leader, a leader of a wealthy region. when it comes to tech and financial industry with a great modern infrastructure. This said we have a long way to go which Dubai can and I am sure will progress to. Yes it is Dubai were we & plenty others choose to reside, develop and grow. The rise of DIFC, DIFCCourts are major contributors to the city’s future. at the same time spectacles similar to expo2020dubai will add significant value specially coming at the time it will occur.

Q10: How will Government-issue stablecoins (such as China’s DCEP) and Institutional-issued stablecoins (Libra_) disrupt international settlements?

A: Filipe
Government-issue stablecoins will have a profound long-term impact on international settlements, leading to increased efficiency and lower costs for institutions. Digital native money will reduced intermediation, being specially accrued by retail business who use current rails.

A: Makram Hani
Decentralized or centralized fixed or floating questions that we will ask until it all occurs. Fixed relative to what? I believe there will be a main market and an alternative market. I am not sure what will prevail however I’m a believer there is merit in a hybrid approach that can offer some sort of stability, yet the advantages of a digital currency.

A: Filipe
For consumers, this will also lead to a universal access to stable-value currencies and easy access to the wider universe of cryptocurrencies.

Q11: Do you believe they could complement or replace other existing stablecoins? Or, even the US Dollar itself?

A: Filipe
This does not preclude its displacement as dominant currency in international trade. A digital CNY (DCEP), a private or entirely decentralised stablecoin may gain wider support by providing compelling economic benefits, sustainable economic policy, transparency and governance.

Initially complement in a competitive market, and at a later stage a native digital dollar displacing its current USD counterpart, with other government and private ones being traded alongside.

A: Makram Hani
USD may be DUSD. Actually let me reiterate. Who said which of the currencies currently dominant can survive what’s coming. Who said it is planned to or it will be feasible to.

Q12: Will we ever see a legitimate digitalcurrency backed by oil reserves as a reference price?

A: Filipe
Yes, I believe we will. Can quite a strategic move for EMEA countries to complement and compete with DCEP, a digital dollar, e-euro as part of a digital transformation strategy.

A: Makram Hani
I am definite that we will. If we go back to the history of currencies in circulation and ask how, when and why we see a probability that the end result should be a unit that will be used as a fair means of exchange to streamline the barter There maybe a currency backed by the price of a sqm of property in DIFC or a return unit at EmiratesREIT1 as a reference price. The sky is the limit.

Collected and published by Founders Club editorial team.