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Cardano is host to the first smart contract where Argentina’s courts have jurisdiction after the country legalized crypto as a payment method in commercial contracts last December.
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Cardano is now host to the first legally enforceable smart contract on its network, which was signed in and is under the jurisdiction of Argentina’s courts.
The contract is a loan agreement between Cardano ambassadors Mauro Andreoli and Lucas Macchia for 10,000 Cardano (ADA) tokens — worth $3,380 — payable in 4 months at an interest rate of 10%.
It’s the first time an Argentine court could enforce full payment in ADA from a Cardano smart contract, Andreoli explained in an Oct. 8 X post.
“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.”
Andreoli and Macchia also signed an accompanying legal document underpinning key details of the smart contract loan, including the blockchain and wallet used along with the transaction ID.
Andreoli reviewing and signing the legal document. Source: Mauro Andreoli/X
Andreoli said the “milestone” could fast-track Argentine courts more broadly acknowledging smart contracts as a technology to facilitate commercial agreements.
“Legally, this establishes evidence and streamlines procedural steps, marking the initial phase of creating favorable jurisprudence in the country and facilitating commercial transactions.”
He added such smart contracts can be applied to the rental of houses, purchase agreements or other legal contracts.
Argentina already has a “robust legal framework” for commercial contracts, but Andreoli said the next step is to educate judges.
Related: Binance ‘fully available’ in Argentina after VASP registration
Argentina legalized the use of Bitcoin (BTC) and other cryptocurrencies in commercial contracts in December 2023 — 10 days after anti-central bank libertarian Javier Milei took office as president.
Source: Mauro Andreoli
The contract comes ahead of Cardano’s founder Charles Hoskinson’s scheduled meeting with Milei at the Cardano Summit 2024 in Buenos Aires later this month.
Other court systems have accepted crypto technology when carrying out legal proceedings.
In August 2023, a United States court used an enforcement tool on a blockchain to lock several sanctioned individuals out of their crypto wallets.
In 2022, the High Court of England and Wales allowed the use of a non-fungible token (NFT) to deliver a lawsuit to a defendant.
Later that year, a Florida federal court also allowed suit to be served via an NFT to the wallets of alleged crypto thieves, as the defendants were unknown.
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This article first appeared at Cointelegraph.com News
