Rental contracts in Malta are now run on blockchain

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Malta is one of those countries that are very pro-blockchain and pro-crypto. As Leaprate reported back in January 2019, Malta was home to more than twice that amount of crypto exchange trading than the U.S at that time.

Malta led the cryptocurrency trading craze with $40 billion in trading volume back in early 2019. Now, this “this small Mediterranean island archipelago of less than five hundred thousand people” is taking another step in the blockchain realm.

The news comes from Digital Journal. The transparency and security advantages of blockchain has made Malta move all of its rental contracts on the technology, a move that is undeniably disrupting the entire real estate sector in the country.

The decision to move the rental contracts on blockchain was announced by Malta’s Prime Minister, Mr. Joseph Muscat. What this actually means is that every contract for rent must be registered on blockchain in order to be valid.

The reasons for the decisions are the numerous advantages that blockchain as a technology offers such as: increased transparency, improved security, fraud prevention, consistency and ease of use.

In addition, blockchain has been used throughout the world for another major purpose: to bring down operational costs where possible. The rental property market in Malta is no exception, as the implementation of blockchain may actually lower the cost of rental contracts and bureaucracy.

As Digital Journal reported, this is what Mr. Muscat said about the project:

We will now be showing people the added value of this technology through applying it to something which they will use in their daily lives. This shows how the digital transformation will affect their lives.

 

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