30s Summary
Cardano, a cryptocurrency network, has hosted Argentina’s first legally recognized smart contract – a loan between two of its ambassadors. This significant event could encourage Argentina’s courts to incorporate smart contracts into commercial agreements more frequently. The country has recognized cryptocurrencies such as Bitcoin since December 2023, and it is also noted that this Cardano contract is occurring ahead of Cardano’s founder’s scheduled meeting with Argentina’s president. US courts have likewise started accepting cryptocurrency technology in legal proceedings, and a High Court in England and Wales has allowed the use of a non-fungible token (NFT) to deliver lawsuit documents.
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Cardano, the cryptocurrency network, is making history in Argentina by hosting the first smart contract that’s legally recognized under Argentinian law. The smart contract is a loan between Mauro Andreoli and Lucas Macchia, both ambassadors of Cardano, for 10,000 ADA (Cardano tokens), valued at $3,380. The loan is expected to be paid back in four months with 10% interest. This is a big deal because it’s the first time an Argentinian court has the ability to enforce a Cardano smart contract to ensure full payment in ADA. The two ambassadors also created a legal document detailing everything about the loan, from the blockchain and wallet details to the transaction ID.
According to Andreoli, this big step might encourage Argentinian courts to use smart contracts more often in handling commercial agreements. He also believes these types of contracts can be applied in different legal arrangements such as house rentals and purchase agreements. Let’s not forget that Argentina has a solid legal framework for commercial contracts, but the key now is to educate judges about this new development.
It’s also worth noting that Argentina has been accepting Bitcoin and other cryptocurrencies since December 2023 under the leadership of libertarian President Javier Milei. This Cardano contract is happening right before Cardano’s founder Charles Hoskinson is scheduled to meet with Milei at the Cardano Summit in Buenos Aires later this month.
Similar things have happened in other countries; US courts have begun accepting cryptocurrency technology in legal proceedings. For instance, in August 2023, a US court used a tool on a blockchain to impose sanctions on certain individuals, preventing them from accessing their cryptocurrency wallets. In 2022, the High Court of England and Wales permitted the use of a non-fungible token (NFT) to deliver lawsuit documents to a defendant. Later, a Florida federal court allowed a lawsuit to be served via an NFT to the alleged crypto thieves’ wallets.
Source: Cointelegraph