David Lau made use of cryptocurrency to pay for 50% of the sum to buy a new car.
David Lau is a business Manager based in Singapore. He was riding on the hype, and he was able to see it grow very slowly.
MHG Cars began their operations on December 18, 2018. Lau brought his car from MHG Cars. He states that he is letting go of the digital asset by paying for the car that he was buying for his father.
Currently, MHG Cars are the only dealership that accepts cryptocurrency payments in Singapore.
Lydia Ang, the Director of the company, stated that despite being a niche market now, it would be a major payment method in the future. She further added that this process lowers the costs for the dealer and provides the customers with improved options for payment.
MHG cars have partnered with BizKey that acts as the middleman doing the job of collecting cryptocurrency and dispensing cash to their partners. Bizkey trades in cryptocurrency and they are interested in countries like China.
The Singapore authorities do not regulate the current transactions of MHG cars. A bill is likely to be proposed in the parliament this year, and this will eventually set the Monetary Authority of Singapore (MAS) to bring in restrictions on the intermediaries who will buy and sell digital currency to exchange for fiat currency.
Previously, the Monetary Authority of Singapore issued warnings to the public about having to be extremely cautious when being involved in such transactions.
The purchase made by Mr. Lau surprised the chairman of the Token Economy Association. Mr. Chia Hock Lai is also the president of the Singapore Fintech Association. This is because such a transaction is uncommon in Singapore.
There have been situations where one will be able to pay for purchases in eateries and café using cryptocurrencies. However, a large sum for an investment being made in cryptocurrency is new in Singapore. There are very few merchants who accept cryptocurrency in payment.
Mr. Chia stated that Volatility is a major factor that should be considered when making and accepting payments in cryptocurrency.
When talking about the purchase made by Mr. Lau, Mr. Chia stated that this is going to be a one-time event. He further opined that such payments methods might not get to become very frequent.
Buying the new car with cryptocurrency by Mr. Lau was a method of cashing out. He chose to use this payment method considering the state of the cryptocurrency market right now. He knew the market was not bullish, so he chose to put his money in to other kinds of investments.
