Blockchain-based “tokenisation” of car ownership that allows car enthusiasts to own “fractions” of luxury vehicles is a perfect fit for the car-crazed Gulf region, according to the representatives of blockchain platform BitCar.
The Australia-based BitCar allows fractional ownership of luxury vehicles, including Lamborghinis, Ferraris and Bugattis, allows users to park their cryptocurrency in “BITCAR tokens”, which can then be traded on a decentralised blockchain platform.
According to BitCar car specialist Daniel Woodruff, the cars on the platform are sourced and acquired by a third party agent, which handles the maintenance, storage and insurance.
The car will be kept for a minimum of five years,” Woodruff said. “After this point the owners of the car will be the asset token owners, and they can then democratically vote when they want the car to be sold, whether on the five-year mark or extended over time.”
“After this date is agreed, the car will be then taken to auction. When the car is sold, the returns are then passed back to the car token owners,” he added.
The cars themselves – which Woodruff said are “treated as pieces of art” – are not driven during their holding period, but BitCar is looking at ways to display them to the public, such as in airports, showrooms and museums. More info
By By Bernd Debusmann Jr arabianbusiness.com