Sweden Plans to Use Blockchain for Property Transactions

Despite the declining popularity of cryptocurrency, Sweden plans to capitalize on the technology behind the virtual currency in property transactions.

The land mapping authority and Swedish property registrar, Lantmateriet, will be the first institution in the world to allow the use of virtual currency in property sale transactions.

The plan, Lantmateriet will conduct trials of the inaugural transaction the next few months. Currently the authority is listing volunteers who want to buy or sell property using the blockchain system.

"From a tech standpoint, we're quite ready," said Chief Digital Officer Lantmateriet, Mats Snall. According to him, the system will allow the deal to be signed and registered if the buyer or seller is not physically present in Sweden.

However, to create a real-estate transaction structure in blockchain, Lantmateriet cooperates with Telia Co. telecommunication company. Ab and law firm Kairos Future and blockchain technology company ChromaWay AB.

However, currently Swedish law does not accept digital signatures to register sales or purchases of property. Thus, Swedish property laws must be changed first, before the blockchain system is fully implemented after the trial period.

The use of blockchain technology has also been ogled by other countries, such as the United States (US), India and Georgia. Tech giants like International Business Machines Corp. and startup developers of blockchain technology, the CEV R3 has also tested the use of technology to record property transactions.