Argentina, facing hyperinflation and currency devaluation, has embraced smart contracts. Local reports confirm that authorities have declared the first Cardano-based smart contract legally binding, marking a major milestone for digital assets.
The smart contract is a four-month agreement between two Cardano ambassadors in Argentina, Mauro Andreoli and Lucas Macchia. This is an ADA loan of 10,000 (approximately $3,430) that must be repaid with 10% interest.
Andreoli confirmed in a post on X (formerly Twitter) that legal action could be taken if either party breaches the contract. “Any violation may be enforced in court for enforcement of the obligation in ADA,” he explained.
We did it, we just signed the first legally and legally binding contract on the Cardano network, in full compliance with the laws of the Argentine Republic.
Since smart contracts are digital contracts powered by blockchain technology, the two Cardano ambassadors also signed legal documentation that includes the date, time and transaction details such as the transaction ID and wallet addresses.
Also read: Argentina looks to El Salvador’s Bitcoin policy for insight
According to Andreoli, the next step is to educate judges about the meaning and legal enforceability of smart contracts. This will help create favorable case law in the country and facilitate commercial transactions.
Andreoli added that the same concept can be applied to various legal agreements, such as lease agreements, purchase agreements and other legal business transactions.
Argentina’s economic challenges have prompted the country to consider the example of Bitcoin-friendly economies such as El Salvador. Argentinian authorities are studying Bitcoin adoption and the legal framework in El Salvador. The President of El Salvador, Nayib Bukele, even visited the Argentine Congress for discussions.
Disclaimer: The information in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses arising from the use of said content, products or services. Readers are advised to exercise caution before taking any action regarding the company.
