Cardano just scored a groundbreaking achievement in Argentina.
The blockchain has hosted Argentina’s first legally enforceable smart contract on its network, a move that could reshape how the country views blockchain technology.
This contract, which falls under the jurisdiction of Argentine courts, marks a pivotal step forward in merging traditional legal frameworks with innovative crypto solutions.
The agreement, a loan contract, involves Cardano ambassadors Mauro Andreoli and Lucas Macchia. The deal covers 10,000 ADA tokens, currently valued at $3,380, with repayment due in four months and a 10% interest rate.
What makes this truly revolutionary is that for the first time, an Argentine court has the authority to enforce payment in ADA directly from a smart contract built on Cardano’s blockchain.
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Andreoli, one of the key figures in this historic moment, announced the news on X on October 8.
To solidify the smart contract’s legal standing, he and Macchia signed a supporting legal document that details the contract’s technical specifics, including the blockchain, wallet used, and transaction ID.
Andreoli believes this milestone could accelerate Argentina’s legal system’s recognition of smart contracts, opening doors for their wider adoption in business dealings. The potential applications are vast, ranging from real estate rentals to purchase agreements and various other legal contracts.
According to him, this step not only provides evidence but also simplifies legal processes, helping to build a foundation for smart contracts within the country’s commercial landscape.
According to Andreoli, Argentina already has a solid legal framework for commercial contracts, but the next phase is to educate judges about blockchain technology’s potential.
Argentina’s journey with cryptocurrency laws dates back to December 2023, when Bitcoin and other digital assets became legal for use in commercial agreements.
This move happened just ten days after Javier Milei, a pro-crypto libertarian, assumed the presidency.
Interestingly, Cardano’s founder, Charles Hoskinson, is set to meet with Milei at the upcoming Cardano Summit 2024 in Buenos Aires, underscoring the importance of blockchain in the country’s evolving financial landscape.
Around the world, other judicial systems are also starting to embrace blockchain tech. In August 2023, a U.S. court locked sanctioned individuals out of their crypto wallets through blockchain enforcement. Earlier in 2022, the High Court of England and Wales used a NFT to serve a lawsuit, and a Florida court followed suit, serving legal papers via NFT to unknown defendants accused of crypto theft.
This global trend indicates that blockchain technology is increasingly being recognized as a legitimate and practical tool in the legal arena. Argentina’s embrace of these innovations is a clear sign of what the future may hold for smart contracts and crypto-based commercial agreements.
