Malta’s Digital Transformation: Property Rental Contracts Will Be Registered on Blockchain in Malta
- Malta will be imposing regulations that put real estate transactions on the blockchain.
- The governments goal is to create trustless ledgers for rentals and other forms of real estate.
Malta has worked hard to become an epicenter of the cryptocurrency and blockchain industry. In news released by Malta Today on June 23rd, there are new rules being imposed that will require property rental contracts to be registered on the blockchain, which will be primarily due to security concerns.
The prime minister of Malta, Joseph Muscat, stated that new regulations were approved by the cabinet, though these regulations will not be announced for several days. However, the regulations require that all rent contracts be registered on the blockchain, which will ensure that the contracts will not be tampered with and that only authorized users can access it.
Muscat further explained that the intention of the government is to continue showing how blockchain technology can be used, applying it into something that consumers regularly are involved with. He continues, saying,
“Such a contract cannot be tampered with and only those authorized will be able to access it. This shows how the digital transformation will affect their lives.”
Last year, Malta became known as “blockchain island.” In February, a consultation on cybersecurity was issued by the Malta Financial Services Authority, which suggested that compliance with international standards by the cybersecurity system of the agency.
Adding blockchain technology to these types of real estate has been increasing in popularity lastly throughout the world. In June, Etisalat got involved with real estate blockchain technology through a memorandum of understanding. Etisalat is the Dubai Land Department and telecoms firm. Both parties decided to try to execute standards for the government, creating property transactions with the use of paperless management and digital contracts.
The Enterprise Ethereum Alliance (EEA) discussed multiple blockchain use cases last month, as they pertain to the real estate industry. The EEA says that the use of blockchain in real estate transactions can reduce the amount of time it takes to record and transfer properties, while simultaneously improving transparency and developing trustless land registries.