Originally published on: October 10, 2024
Cardano has achieved a significant milestone by hosting the first legally enforceable smart contract signed in Argentina under the jurisdiction of its courts. This groundbreaking contract is a loan agreement between Cardano ambassadors Mauro Andreoli and Lucas Macchia, involving 10,000 CardanoADA tokens valued at $3,380, payable with a 10% interest rate over four months.
This historic event marks the first time an Argentine court can enforce full payment in ADA from a Cardano smart contract, as explained by Andreoli in an X post on Oct. 8. Not only did Andreoli and Macchia sign the smart contract, but they also executed an accompanying legal document detailing the key aspects of the loan agreement, including the blockchain, wallet used, and transaction ID.
According to Andreoli, this achievement paves the way for Argentine courts to recognize smart contracts as a valuable technology for facilitating various commercial agreements, such as rental agreements and purchase contracts. While Argentina already has a robust legal framework for commercial contracts, Andreoli emphasizes the importance of educating judges to fully embrace the potential of smart contracts.
This development comes in the wake of Argentina’s legalization of Bitcoin and other cryptocurrencies in commercial contracts back in December 2023, shortly after the inauguration of president Javier Milei. Moreover, the upcoming meeting between Cardano’s founder, Charles Hoskinson, and Milei at the Cardano Summit 2024 in Buenos Aires demonstrates the growing integration of crypto technology into legal frameworks.
Notably, other court systems around the world have also embraced crypto technology in legal proceedings. For instance, a United States court used a blockchain enforcement tool to restrict access to crypto wallets of sanctioned individuals, while courts in England and Wales facilitated lawsuits using non-fungible tokens (NFTs). Similarly, a Florida federal court served a lawsuit via an NFT to the wallets of alleged crypto thieves.
In conclusion, Cardano’s achievement in hosting the first legally enforceable smart contract in Argentina signifies a significant step forward in the integration of blockchain technology into legal systems worldwide. Stay informed about the latest developments in crypto laws and guidelines by subscribing to the Law Decoded newsletter for valuable insights into making informed decisions for your crypto ventures. Subscribe now to arm yourself with the knowledge needed to navigate the evolving landscape of crypto regulations.
