Argentina has made a significant move toward blockchain adoption by officially recognizing smart contracts. These blockchain-based agreements can now be used for rental agreements, purchase payments, and other legal contracts. Cryptocurrency is also approved as a valid payment method for commercial transactions, adding flexibility to business dealings.
First Legal Smart Contract on Cardano Network
The Argentine judiciary has approved the country’s first legally binding smart contract built on the Cardano blockchain. This contract involves a four-month loan between Mauro Andreoli and Lucas Macchia, two Cardano ambassadors. The loan, valued at 10,000 ADA (about $3,430), carries a 10 percent interest rate.
Andreoli explained that the contract’s approval ensures that any breach of its terms can now be enforced in court, with repayment obligations recognized in ADA cryptocurrency.
Smart Contracts Require Legal Documentation
To comply with legal standards, the automated blockchain agreement was supplemented with a signed legal document. This document outlines the contract’s terms, the blockchain on which it was created, and the wallet addresses involved, along with the transaction ID. This dual-layer approach ensures that smart contracts remain enforceable under Argentine law and could serve as a precedent for similar agreements in the future.
Andreoli described the event as a major step toward integrating blockchain technology with Argentina’s legal framework. He emphasized the need to educate judges and legal professionals about smart contracts to build a favorable legal environment. He believes this is only the beginning of broader adoption, helping facilitate commercial transactions across various industries.
Smart Contracts Supported by New Legislation
This development aligns with President Milei’s Omnibus Bill, which legalized the use of cryptocurrencies, including Bitcoin, in commercial contracts. Andreoli highlighted that smart contracts can now be used to formalize various agreements, such as rental contracts or property purchases, offering a new level of transparency and efficiency in Argentina’s business landscape.
