A company is preparing for a dramatic shift to a fully blockchain-based financial system for home trading. Teresa Grobecker and Sheila Fejeran made their case on Inman Connect.
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For years, the impact of blockchain on real estate has been the subject of speculation and confusion in much of the industry.
However, one company is acting on the premise that the switch to a fully blockchain-based financial system for conducting transactions at home could be the first to happen, and has seen this kind of change in the industry. We are preparing a data infrastructure that can support the radical changes of
Two Real Estate Consortia executives — CEO Teresa Grobecker and COO Sheila Fejeran — addressed an audience of real estate professionals at Inman Connect Las Vegas on Friday.
Here are some key takeaways from their presentation.
They believe it is inevitable that the country will move to a new digital currency.
For months, the US Federal Reserve has floated the idea of creating a new digital currency.
In an executive order in March, President Joe Biden called on the government to investigate the matter further, making research and development of a possible new currency “urgent.”
The blockchain community has followed this development with interest. Some see this so-called “Fedcoin” as a potential threat of government backing to existing crypto assets such as Bitcoin.
Others like Grobecker are bracing for the potential for new digital currencies to have a lasting impact on businesses in the economy, including the real estate industry.
And while the prospects for approval of a new digital currency remain unclear, and no proposal has received formal approval, Grobecker is confident that it is only a matter of time before Fedcoin becomes a reality.
“But whether you love blockchain or hate it, what you really need to know is that when Fedcoin comes along, all transactions will be on the blockchain,” said Grobecker. “So it is important that we adapt and adopt this as a business practice so that we are ready to serve our customers when this upheaval happens. And here we are today. ”
They are committed to keeping agents front and center.
Consortia executives have promised for years that their platform will aim to keep agents at the center of real estate transactions should the market undergo such a shift.
This has been a topic of much conversation within the crypto community, and historically saw a broker as an anathema.
But in the version of events where all real estate transactions are recorded on a decentralized blockchain ledger, an agent would be needed for all reasons today, Grobecker argued.
The consortium has gone as far as hard-coding agents into the blockchain process, securing a place for them in the blockchain’s immutable record, Grobecker said.
“Obviously, consumer protection is the number one goal, but once that goal is achieved, agents and intermediaries take center stage and serving consumers is our commitment to our customers and the industry. It’s a commitment,” said Fejeran.
Agents performing NFT transactions are at significant risk.
Since blockchain assets are regulated differently than regular real estate transactions, agents are also exposed to unfamiliar legal risks, Fejeran said.
“What most people sitting in this room probably don’t realize is that when you start selling homes as NFTs, you’re actually crossing the line with what’s considered SEC guidelines and regulations. is,” she said.
To that end, the consortia has developed educational materials designed to ensure agents “don’t wear orange jumpsuits” if they venture into the field, Fejeran said.
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