by Nestor Marcote 
Historic Real Estate Transaction in Mexico Using NFT and Bitcoin
On June 30, 2021, Mexico witnessed its first-ever real estate transaction utilizing an NFT (non-fungible token), marking a groundbreaking milestone in the country’s rapidly growing property market.
The company Fibra GDL successfully sold an apartment in Ajijic, Guadalajara for 4,201,750 MXN (approximately $211,000 USD) using Bitcoin as the payment method through the Bitso cryptocurrency exchange platform.
The initial deposit, often referred to as the “down payment,” amounted to 700,000 MXN (about $35,000 USD) or 1 BTC at the time. This represented 16% of the total property value. The transaction was facilitated through Bitso, where George Goodman, founder of the fintech company Xifra, made the deposit directly into Fibra GDL’s bank account.
A Brief History of Real Estate and Cryptocurrency Transactions
The first known property purchase via cryptocurrency occurred in 2017 when Michael Arrington, founder of TechCrunch, made headlines by acquiring an apartment on the Propy platform using 36 ETH, valued at approximately $93,000 USD at the time.
Later that year, in December, Go Homes facilitated England’s first crypto-backed real estate sale. The property, located near Colchester, sold for £375,000, which equated to 82.55 BTC at the time.
In April 2021, MercadoLibre introduced a dedicated section for purchasing real estate with Bitcoin in Argentina and Uruguay, with listings categorized by price ranges: less than 1.5 BTC, between 1.5 and 2 BTC, and over 2 BTC. These properties are primarily located in cities like Santa Fe, Córdoba, and Punta del Este (Uruguay).
Meanwhile, Spain has allowed real estate purchases via Bitcoin for over a year. By 2020, six properties had been successfully sold using the cryptocurrency, according to Bit2Me.
This emerging trend highlights the growing integration of blockchain technology in real estate transactions, offering enhanced security, transparency, and efficiency for buyers and sellers alike.
WHERE ARE WE HEADING?
For those of us belonging to the millennial generation — often referred to as an “intermediate generation” — the use of digital tools has become second nature. As active contributors to the development of cutting-edge technologies now prevalent in nearly every market, millennials are undeniably pioneers in both the creation and adoption of cryptocurrencies.
The potential to generate significant wealth before the age of 40, thanks to these emerging technologies, has positioned millennials as a powerful driver of global consumption — currently ranked as the leading consumer demographic worldwide.
Today, millennials make up 30% of the global population. The entry of 2 billion millennials into adulthood represents more than just a generational shift — it reflects a transformation in consumer behavior. This generation, accustomed to constant online connectivity, now conducts much of its purchasing digitally. For example, in November 2018, consumers spent a staggering $25 billion during Alibaba’s Singles Day, China’s major online shopping festival.
To stay relevant in this evolving landscape, the real estate sector must adapt to the preferences and expectations of this dominant generation. Companies that fail to embrace technologies like Bitcoin and other cryptocurrencies risk being left behind. Conversely, those who successfully integrate these innovations are likely to see their businesses thrive alongside the exponential growth of digital currencies worldwide.
LEGAL ASPECTS TO CONSIDER WHEN PURCHASING PROPERTY
When conducting a real estate transaction in any currency — including cryptocurrencies — it is essential to comply with specific legal requirements. In Mexico, these regulations are outlined in Article 2258 of the Civil Code (Mexico City). In simpler terms, this law stipulates that a property’s value must be tangible and expressible in monetary terms.
What does this mean in practice?
Under Mexican law, there is no formally defined concept of “money.” Instead, value is interpreted as a medium of exchange that can be legally justified — whether it be a property, an asset, or any other form of equity — as long as its value can be converted into legal tender.
According to Mexico’s Monetary Law, the country’s official currency is the Mexican peso, with foreign currencies also recognized as legal means of exchange as determined by law.
Are Cryptocurrencies Considered Foreign Currency?
No, they are not. Cryptocurrencies are classified as virtual currencies, and while this topic continues to be studied in depth, it’s important to note that no cryptocurrency is backed by the Bank of Mexico or the Mexican federal government.
As a result, a traditional purchase-sale transaction cannot be conducted directly using cryptocurrencies in Mexico, as they are not yet recognized as “money” under current legislation. However, it is possible to purchase property in Mexico using this payment method — and here’s how.
How to Buy Property Using Cryptocurrencies
Property purchases involving cryptocurrencies can be legally carried out through a barter agreement (permuta).
According to Article 1825 of the Civil Code (Mexico City), a valid barter contract must meet the following conditions:
- The item in question must:
- Exist in nature
- Be defined or definable by its characteristics
- Be tradeable in the market
Cryptocurrencies meet these criteria — they exist, can be clearly identified, and are actively traded (as established by Articles 747 and 749 of the same code). Since no law in Mexico explicitly prohibits the exchange of cryptocurrencies, they can be legally traded under a barter agreement, provided both parties mutually agree.
To ensure a secure and beneficial transaction, it’s advisable to use established cryptocurrencies with a track record of stability and growth, such as Bitcoin. Conducting a property exchange with Bitcoin can be a smart investment, offering both parties the potential for substantial returns in relatively short timeframes.
Embracing Mexico’s Progress in Cryptocurrency Transactions
With these developments, Mexico takes a significant step forward in adopting cryptocurrency innovations for real estate transactions. At Play Investments, we are committed to being part of this technological and economic revolution, providing the guidance and support needed for successful transactions.
Sources Consulted for This Article
https://mexico.justia.com/federales/codigos/codigo-civil-federal
https://www.marhnos.com.mx/tu-casa-nueva-con-bitcoin
https://www.criptonoticias.com/comunidad/vendio-primera-casa-reino-unido-valorada-bitcoins
https://www.expansion.com/directivos/estilo-vida/tendencias/2018/06/30/5b368cb3e2704e3c118b45cd.html
