The Cardano network has become the first to host a legally enforceable smart contract in Argentina amid growing popularity.
The apparent rise of the Cardano network in Argentina has reached a new milestone after the blockchain recently hosted the first legally binding smart contract, fully compliant with the country’s laws. For context, a smart contract is an on-chain program that automatically executes an action according to agreed upon terms.
In a tweet On Tuesday, Cardano Ambassador Mauro Andreoli revealed that Cardano had reached a significant milestone after signing an enforceable blockchain-based legal agreement with fellow Ambassador Lucas Macchiavelli.
Smart contract details
In accordance with the smart contract, Macchiavelli received 10,000 ADA ($3,362 at current market price) from Andreoli, payable at an interest rate of 10% for four months.
The agreement was also legally notarized, with both parties providing certain information. This included the network on which the smart contract was initiated, the wallet address and the transaction ID. The legal document also contained data such as the names, addresses and identity numbers of the two Cardano ambassadors.
Meanwhile, Macchiavelli confirmed receipt of the 10,000 ADA in a tweetteasing that he would invest them in native Cardano tokens. He said he would reveal more details about the company at the end of the contract.
Okey, let’s fix this Cardano community🗳️🗳️@MauroAndreoliA I just lent myself 10k in Argentina’s first ADA contract😉🇦🇷
We plan to invest them in CNTs. I will review the results after 90 days when the contract is complete.
Which project should I choose? 👇👇
– Lucas Macchiavelli (@LucasMacchia2) October 10, 2024
Moving to widespread and accelerated adoption
Andreoli said the smart contract agreement would promote the adoption of technology by legal entities in Argentina to draft commercial transactions. He also claimed that it would create a system in which the judiciary would recognize smart contracts as a means of legal agreement.
The Cardano ambassador further hinted that the scope of the technology is not limited to loan applications. Andreoli insisted that smart contracts could be used in agreements such as rentals, purchases and other legal transactions.
Furthermore, Andreoli said that Argentina already has legal frameworks for contracts of this nature. He cited Argentina’s Civil and Commercial Code and Presidential Decree 70/23, issued by outgoing crypto-friendly President Javier Milei.
Notably, under Milei’s new leadership, Argentina has accelerated the adoption of digital assets. One sooner report shows that Cardano founder Charles Hoskinson will discuss crypto adoption with President Milei at a conference later this month.
It is worth mentioning that digital assets and blockchain technology have recently gained increased utility in the real world. In September, an English court recognized stablecoin Tether as property in fraud-related legal battle. This also happened after a legal entity classified cryptocurrencies as means of payment of salary in the United Arab Emirates.
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