Smart contracts are now legally enforceable in Argentina
Smart contracts, which are blockchain-automated programs, have gained official legal recognition in Argentina. The local judicial system has, for the first time, acknowledged the enforceability of a smart contract, meaning they can now be used for legal transactions such as rental agreements or payment for purchases. Cryptocurrencies have recently been approved as valid means of payment in commercial contracts in the country.
Legal Milestone for Smart Contracts in Argentina
Smart contracts, automatically executed digital contracts based on blockchain, have reached a significant milestone in Argentina. According to local reports, the first smart contract based on the Cardano blockchain has been recognized by an Argentine court as legally binding. This historic event may be one of the first not only in Argentina but also in the world.
The contract involved a four-month loan of 10,000 ADA (approximately $3,430) with a 10% interest rate between two Cardano representatives in Argentina, Mauro Andreoli and Lucas Macchia. Andreoli stated that the formalization of this contract means that “any breach can be legally enforced in ADA cryptocurrency.”
Additional Legal Document for the Smart Contract
Due to the digital nature of smart contracts, an additional legal document had to be signed. This document detailed the loan, the blockchain on which the contract was built, and the wallet addresses associated with the transaction. Since this was the first case of its kind, similar documentation may be required in future instances to legalize smart contracts.
Andreoli highlighted the importance of this development, stating:
“We’ve just signed the first legally and judicially binding contract on the Cardano network, fully compliant with the laws of the Argentine Republic.”
Educating Judges and the Future of Smart Contracts
Andreoli believes the crypto community should work on educating national judges to familiarize them with this new type of contract. He sees this event as the “initial step in creating favorable case law in the country and facilitating business transactions.”
Smart contracts are supported by President Milei’s omnibus law, which legalized the use of Bitcoin and other cryptocurrencies as part of commercial contracts in Argentina. Andreoli concluded that smart contracts can now be used to formalize rental, purchase, and other legal agreements.
#smartcontracts ,
#blockchaininnovation ,
#CryptoLaw ,
#CryptoNews🚀🔥 ,
#Argentina Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“