Argentina has officially taken a major step towards integrating blockchain technology into its legal and economic framework and may soon officially adopt Cardano’s ADA cryptocurrency as a recognized payment method for loans.
A tweet on Tuesday publicly announced this groundbreaking development by Mauro Andreoli, a lawyer and Cardano ambassador to Argentina.
“We did it, we just signed the first legally and judicially enforceable contract on the Cardano network, fully compliant with the laws of the Argentine Republic,” Andreoli tweeted, marking a historic moment in Argentina’s crypto adoption.
The commentator also presented a contract, a loan agreement between him and another Cardano ambassador, stipulating a loan of 10,000 ADA, repayable within four months at 10% interest.
Notably, this contract, notarized and registered with a transaction ID (Tx ID) on the Cardano blockchain, is the first contract to be legally enforceable under Argentine law.
The legality of the contract is reinforced by its compliance with the Argentine Civil and Commercial Code, specifically Article 1525, which defines a “mutual contract” as a form of loan in which the lender transfers ownership of a quantity of goods (in this case, ADA) to the borrower, who is obliged to return an equivalent amount of money.
For Andreoli, the milestone marks a significant step forward for Argentina’s legal framework in the field of cryptocurrencies. “This is certainly a significant step forward. Legally, this establishes evidence and streamlines procedural steps, marking the first stage of creating a favorable jurisprudence in the country,” he explained.
The adoption of ADA for loans comes on the heels of Argentina’s growing interest in cryptocurrencies. Under the leadership of President Javier Milei, who takes office in 2023, Argentina has taken a strong pro-crypto stance. Just last year, following Milei’s election, Argentina officially approved the use of Bitcoin (BTC) in contractual agreements. Milei’s push for Bitcoin, along with this new ADA adoption, signals a clear move toward a more crypto-friendly regulatory environment, with the government supporting the use of digital assets in many sectors of the economy.
Notably, the legal framework for this Cardano-based contract is also in line with Presidential Decree 70/23 issued by Milei, which upholds the free movement of goods and services, including cryptocurrencies. “We have a solid legal framework for contracts based on the Argentine Civil and Commercial Code,” Andreoli said, highlighting the broader implications for smart contracts and future commercial transactions.
Despite this, Cardano has made significant strides in Argentina. In June 2024, the Cardano Foundation partnered with the province of Entre Ríos to deploy blockchain technology in public services and financial inclusion. Cardano co-founder Charles Hoskinson has also worked to strengthen his relationship with Argentine President Javier Milei.
Notably, Hoskinson is scheduled to meet Milei on October 19 at the Argentina Tech Forum in Buenos Aires, a key opportunity to promote blockchain adoption in the country.
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