Argentina recognizes Cardano smart contracts as legally binding for the first time
Argentina is facing hyperinflation and currency devaluation, and in search of an economic breakthrough, the country has embraced smart contract technology. Argentinian authorities have announced that the first smart contract based on the Cardano blockchain is deemed legally binding, marking a major milestone for the digital asset industry, according to local reports.
The smart contract is a four-month agreement between two Argentinian Cardano ambassadors, Mauro Andreoli and Lucas Macchia, involving a loan of 10,000 $ADA (approximately $3,430 USD) to be repaid at an interest rate of 10%. Andreoli confirmed in a post on X (formerly Twitter) that legal action could be taken if either party breaches the contract. “Any breach of contract can be enforced in court in the form of $ADA,” he explained.
Legalizing smart contracts opens a new era of business
As smart contracts are digital contracts powered by blockchain technology, the two Cardano ambassadors also signed legal documents containing the date, time and transaction details such as transaction ID and wallet address. Andreoli said the next step is to educate judges on the importance and legal enforceability of smart contracts, which will help establish favorable judicial precedents in the country and facilitate business transactions.
He added that the concept could be applied to a variety of legal agreements, such as lease agreements, purchase agreements and other commercial legal transactions. Argentina’s economic challenges have prompted the country to consider examples of Bitcoin-friendly economies such as El Salvador. Argentine authorities are studying El Salvador’s Bitcoin adoption and legal structure. Salvadoran President Nayib Bukele even visited the Argentinian Congress to discuss it.
Blockchain technology helps economic transformation
Argentina's promotion of the legalization of smart contracts is not only a major support for digital assets, but also an active exploration of the application of blockchain technology in the legal and commercial industries. With Cardano becoming the first legally recognized blockchain platform, this could pave the way for the development of other cryptocurrencies and blockchain technology in the country.
Overall, Argentina’s move reflects the growing global interest in blockchain technology and cryptocurrencies, and may provide a reference for other countries to further promote the arrival of the blockchain era.
This article is reproduced with permission from: CryptoCity
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