Tuesday, March 26, 2019

Man in Singapore Pays $42,000 in Ethereum For Brand New Car

Someone’s enjoying the new year ride, and they’re doing it with their Ethereum. That’s the case of David Lau, a 27-year-old business developer based in Singapore who has just made part of a car payment with Ethereum tokens. The brand new Honda Vezel he has purchased is worth $84,000, and he intends paying half of that money with cryptocurrency.

$42,000 Worth of Ethereum to be Paid for Car

More details into the transaction show that David Lau had already made a $10,000 down payment for the car in Ether tokens. He intends making an additional $32,000 payment in the next three weeks. The remaining part of the money will possibly be paid in fiat from a loan that will be obtained from the bank.

David Lau who began investing in cryptocurrencies for the past two years revealed that as at 2018, he had a portfolio of $500. But as of today, his digital assets are currently worth about $50,000. The crypto enthusiast revealed that his interest had been kindled with virtual currencies when the hype around it was intense and one can assume this was late 2017.

MGH Cars, the First in Singapore to Accept Cryptocurrencies

The car dealership, on the other hand, is MHG Cars which began operation in December 2018. According to Lydia Ang, the company’s director, they are the only car dealership company accepting cryptocurrencies for payments in Singapore. She added that although this is a niche market, there will be significant changes in the future.

The director was also quick to note that accepting digital assets helped to cut down transaction fees from 3 per cent to as low as 1 per cent. She said this was lower compared to when transactions are carried out using the credit card. Besides, there were no regulations in the country to guide the use of such currencies, and as such, the company was unaffected by policies that may hold in certain jurisdictions.

Reputable Leaders Remark on the Development

While crypto enthusiasts attention has been kindled to this transaction, other reputable leaders in the area have made comments. Chia Hock Lai, the President of the Singapore Fintech Association and chairman of the Token Economy Association, remarked that he is surprised. He also called it a one of a kind transaction adding that the use of cryptocurrencies for payments in Singapore was uncommon.

This may be unique for the region, but it isn’t for places in the US, Venezuela, and other countries where virtual currencies are being accepted online and offline by companies. Birks group, a dealer of Jewelry including Rolex, began accepting Bitcoin in November last year.

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