Cardano Sets Legal Precedent With Enforceable Smart Contract In Argentina

1 month ago 8

Cardano has marked a significant legal milestone in Argentina with the signing of what is described as the first legally and judicially enforceable contract on the ADA blockchain network, fully compliant with Argentine law. On October 8, Cardano ambassador and Interim Constitutional Committee (ICC) member Mauro Andreoli announced via X (formerly Twitter) that he and fellow ADA ambassador and Token Allies co-founder Lucas Macchiavelli have formalized a loan agreement using the Cardano network.

“We did it, 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. What does this mean? It means that, thanks to the legal framework provided and the process carried out, any breach can be enforced in court for the performance of the obligation in ADA,” Andreoli remarked.

Cardano Adoption In Argentina

The contract entails a loan of 10,000 ADA, payable in four months with an interest rate of 10%. The transaction is notarized with its transaction ID, providing verifiable proof on the blockchain. Andreoli noted that the legal document includes critical details such as the network specification, wallet addresses, and the transaction ID of the loan agreement.

“This establishes evidence and streamlines procedural steps, marking the initial phase of creating favorable jurisprudence in the country and facilitating commercial transactions,” Andreoli stated. He added that this development serves as a precursor for future legal smart contracts, laying the groundwork and strengthening the system.

Andreoli emphasized the importance of educating the judiciary on blockchain technology but expressed confidence in the existing legal framework. “We have a robust legal framework for contracts based on the Argentine Civil and Commercial Code and Presidential Decree 70/23 issued by President Milei,” he said. While he could not share the full contract due to sensitive personal information, he indicated that this approach could be applied to various legal transactions, such as property rentals and purchase agreements.

He also highlighted that this structure could benefit companies within the ADA ecosystem, including NMKR, Emurgo, Lagon, and PALM Economy, by enabling them to legally structure their businesses using the Cardano network. “These organizations can leverage the results and advantages of this development, ensuring a solid legal framework for their commercial activities,” Andreoli mentioned.

The Cardano Foundation acknowledged the achievement, commenting via X: “Fantastic work, Mauro Andreoli! Your dedication and hard work for the Cardano community never go unnoticed. Keep it up!”

This development comes ahead of Cardano founder Charles Hoskinson’s scheduled visit to Argentina for the Cardano Summit 2024 in Buenos Aires later this month. Hoskinson is set to meet with Argentine President Javier Milei on October 19 at Tech Forum Argentina to discuss the future of blockchain technology and the cryptocurrency economy.

At press time, ADA traded at $0.3368.