Argentina officially recognizes smart contracts as legally enforceable, paving the way for blockchain adoption in commercial transactions and legal agreements.
In a groundbreaking development, Argentina has officially recognized smart contracts as legally enforceable. This new milestone allows blockchain-based contracts to be used in various legal agreements, including rental contracts, purchase payments, and more. The legal acceptance of these smart contracts is part of a broader move to integrate cryptocurrency into commercial transactions.
The first Cardano-based smart contract was launched and legalized by the Argentine government, a remarkable achievement in the country’s legal system. According to some sources, the deal entails a four-month loan between Mauro Andreoli and Lucas Macchia, two Cardano ambassadors based in Argentina. In addition, the loan was signed for 10,000 ADA (or about $3,430) using a smart contract, an automated contract within the blockchain.
Historic Smart Contract in Argentina Paves Way for Blockchain in Law
This smart contract is particularly interesting because it is now legally enforceable. In the event of a breach, the contract can be taken through the courts to recover the loan in ADA. However, this was primarily an electronic contract, the two parties had to sign another piece of legal writing to add extra information. Some of the details contained in this document are the type of blockchain, wallet addresses, and transaction IDs. Moreover, this paper document may become the norm in the future in order to make smart contracts legal.
On the other hand, the man involved in the transaction, Mauro Andreoli, expressed joy for the historic event. He pointed out that this was the first legally binding smart contract on the Cardano network in Argentina. Additionally, he mentioned that this is only the beginning of a more extensive campaign. This will create legal cases that would help establish smart contracts as standards.
Besides this success, smart contracts are now backed by President Milei’s Omnibus Bill. This made Bitcoin and other cryptocurrencies legal in commercial transactions. Moreover, this legislative change, as Andreoli noted, creates new opportunities for applying smart contracts in ordinary contracts for the rental and purchase of goods.
As the crypto community grew, Andreoli emphasized the importance of training judges and legal personnel. He believes this will help integrate blockchain solutions into Argentina’s legal system. This was a significant day for Argentina to adopt cryptocurrencies and blockchain solutions in its country.
