Cardano has just deployed the first legally enforceable smart contract in Argentina. The $3,380 loan agreement was executed and supervised by an Argentine court.

Cardano, the open-source blockchain platform, has made a significant step forward in the legal field by officially launching the first legally enforceable smart contract on its network in Argentina. The contract was executed under the supervision of an Argentine court, marking an important step forward in the application of blockchain technology to real-world commercial transactions.

The contract was signed by two Cardano ambassadors, Mauro Andreoli and Lucas Macchia, and is a loan agreement worth 10,000 Cardano tokens, equivalent to $3,380. The loan is due in four months with an interest rate of 10%. The unique feature of the contract is that the Argentinian court can enforce full payment in ADA, Cardano’s cryptocurrency, from a smart contract on the blockchain platform.

Source: Mauro Andreoli

According to Andreoli, this is the first time an Argentine court has recognized and enforced a payment from a smart contract on Cardano. This event is considered an important premise, accelerating the widespread recognition of smart contracts by Argentine courts as a tool to support commercial agreements.

Impact on the legal and commercial systems

The legal recognition of smart contracts is not just a technological milestone, but also has far-reaching implications for the legal and commercial systems. Using smart contracts in commercial transactions, Andreoli said, would help “establish evidence and streamline procedures, marking the first stage in creating favorable domestic precedents and supporting commercial transactions.”

According to Andreoli, the potential applications of smart contracts on Cardano are huge, including rentals, sales, and other legal contracts. He also emphasized the importance of educating judges about blockchain technology to facilitate the widespread adoption of smart contracts in the future.

The event comes as Argentina is pushing to use cryptocurrencies in its economic activities. In December 2023, Argentina legalized the use of Bitcoin and other cryptocurrencies in commercial contracts. This is part of the policy of President Javier Milei, who favors liberalizing financial markets and reducing central bank control.