Cardano Hosts First Legally Enforceable Smart Contract in Argentina
NAIROBI (CoinChapter.com) — Cardano has reached a new milestone in Argentina by hosting the country’s first legally enforceable smart contract. This follows Argentina’s decision in December 2023 to legalize cryptocurrency for use in commercial contracts. The contract, a loan agreement between two Cardano ambassadors, sets a precedent for crypto’s role in the legal landscape.
First Loan Agreement in Cardano (ADA) Under Argentine Law
The smart contract, signed between Cardano ambassadors Mauro Andreoli and Lucas Macchia, involves a loan of 10,000 ADA tokens, currently valued at $3,380. The agreement stipulates a four-month repayment period with a 10% interest rate.
Andréoli meticulously examines and signs the legal document. Source: Mauro Andréoli/X
This is the first time an Argentine court can enforce ADA payment from a smart contract on Cardano. In an Oct. 8 post on X, Andreoli highlighted this development as a “milestone” for Argentina’s legal and blockchain space.
“We did it,” he wrote. “We have just signed the first legally and judicially enforceable contract on the Cardano network, in full compliance with the laws of the Argentine Republic.”
Expanding Crypto Adoption in Argentina
Argentina already has a well-established legal framework for commercial contracts. The recent legalization of cryptocurrencies adds a new layer of flexibility, allowing for blockchain technology to support and streamline transactions. Andreoli believes this could lead to more courts accepting smart contracts as valid tools for agreements.
He noted that smart contracts like this one could eventually apply to various sectors, including real estate rentals, purchase agreements, and other legal contracts.
Argentina’s President to Meet Cardano Founder at 2024 Summit. Source: X
This legal precedent comes just weeks before Cardano founder Charles Hoskinson is set to meet with Argentine President Javier Milei at the upcoming Cardano Summit 2024 in Buenos Aires. Milei, who took office last Dec., legalized the use of Bitcoin and other cryptocurrencies in commercial contracts as part of his administration’s pro-crypto stance.
Other global legal systems have also begun accepting blockchain technology in legal proceedings. In Aug. 2023, a U.S. court enforced sanctions by using blockchain tools to restrict sanctioned individuals from accessing their crypto wallets. In 2022, courts in England and the United States allowed lawsuits to be served via non-fungible tokens (NFTs), further demonstrating how legal systems are integrating blockchain solutions.
Cardano’s first legally enforceable smart contract in Argentina represents a major step in the adoption of blockchain technology within legal frameworks. With the support of both Cardano’s network and the Argentine courts, this contract may set the tone for future legal recognition of blockchain-based agreements in the country.
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