In a historic step for Bitcoin adoption, the Aurora Hotel in Hungary became the first four-star hotel to accept bitcoin as payment.
Hotel’s owner, Ferenc Kovacs, announced the decision in an X post, marking a notable development in the hospitality industry’s adoption of Bitcoin.
Kovacs, a known advocate for Bitcoin, demonstrated the new payment method by purchasing a coffee in the hotel’s lobby using his Bitcoin wallet.
The transaction was smoothly processed through a point-of-sale (POS) terminal on site, showcasing the power of Bitcoin’s Lightning network, a layer 2 solution which allows for payments at the speed of light.
The reception online was overwhelmingly positive with many praising the hotel for its forward-thinking approach.
In a recent interview with BitcoinNews, Kovacs expressed his commitment to embracing technological advancements and recognized the potential of a new financial system that operates independently of traditional government and monetary systems.
He championed an inflation-free, digital financial system governed by code, as opposed to being controlled by people or institutions.
This mindset led him to offer hotel guests the option to pay with bitcoin, providing a more convenient and progressive payment method for those who prefer not to use the local currency or for foreigners seeking to avoid currency exchange complications.
While the hotel now accepts bitcoin, invoices will still be issued in Hungarian forints, with the equivalent amount being paid by the guest’s Bitcoin wallet at the current exchange rate.
This ensures transparency and convenience for both the hotel and its guests, who can enjoy the benefits of using Bitcoin without any additional complications.
Kovacs elaborated on the process, highlighting the collaborative efforts with local accounting and legal firms to ensure compliance with Hungarian laws. He stated:
“We contacted RSM Hungary accounting and law firm, which we paid for some consulting stuff. We had questions about legal stuff and accounting rules and they delivered the answers for us so we can start the business. We will share it for free with others as well.”
If Bitcoin is to succeed, it will be because its game theory aligns with human self-interest. That said, we must commend those who invest their time and money into advancing Bitcoin adoption and generously share their knowledge for free.
Beyond hospitality, Kovacs sees a broader potential for Bitcoin adoption across different sectors. He added:
“One of my friends has a barber shop […], I always tell them you should accept bitcoin because it has marketing value, it has a good meaning for society and it is advantageous for you as a business owner.”
Kovacs’ vision extends to his other business ventures, including a company specializing in construction materials.
“My biggest company and the main leader is Precast Concrete Elements. One of my biggest partners told me that he’s really eager and can’t wait for us to pay him with bitcoin for the construction equipment.”
Kovacs unveiled his ambitious plans for the future, detailing a strategy to potentially allocate 1% of the revenue from each company into bitcoin as part of their balance sheet.
This forward-thinking approach underscores his long-term vision, even as he modestly underplays its significance. Furthermore, Kovacs stressed the importance of adhering to local regulatory guidelines.
The hotel’s consultation with RSM Hungary accountants and lawyers ensured that all operations are conducted legally and with the necessary guidance.
The hotel has implemented the proper POS terminals to facilitate seamless Bitcoin transactions, demonstrating its commitment to making the process fully compliant with government regulations.
Bitcoin is a permissionless protocol, but it is not wise to defy the state laws. This pragmatic approach allows the hotel to embrace innovation while maintaining a strong partnership with local authorities.
Aurora Hotel’s move to accept bitcoin is not just a marketing strategy; it’s a bold step towards a future of progress.
This ambitious initiative not only serves as an educational endeavor for the broader community but also sets a trailblazing precedent for businesses across Hungary to explore the unparalleled advantages of the world’s best money.
Unlike the zero-sum game perpetuated by fiat currency, Bitcoin fosters a dynamic, positive-sum ecosystem that benefits all participants.
Ferenc succinctly captured the essence of Bitcoin’s appeal, noting, “Some of my distant friends want to travel here, they said they want to pay in bitcoin because they want to use it. I always tell everyone, you have to use Bitcoin, you have to experience it.”
He added: “When you pay faster than credit cards, when you just magically open your phone and scan a QR code, and pay with a different kind of monetary system […] It’s quite a good experience.”
