- Argentina has termed the first Cardano smart contract as legally binding.
- The contract involves a 10K ADA loan repaid with a 10% interest.
- Cardano ambassador Andreoli said that the next stop is to educate judges.
Argentina, facing hyperinflation and currency devaluation, has embraced smart contracts . Local reports confirm that authorities have declared the first Cardano-based smart contract legally binding, marking a significant milestone for digital assets.
The smart contract is a four-month agreement between two Cardano ambassadors in Argentina, Mauro Andreoli and Lucas Macchia. It involves a 10,000 ADA loan (approximately $3,430) to be repaid with 10% interest.
Andreoli confirmed in a post on X (formerly Twitter) that legal action can be taken if either party breaches the contract. “Any breach can be enforced in court for the performance of the obligation in ADA,” he explained.
We did it, we just signed the first legally and judicially binding contract on the Cardano network, in full compliance with the laws of the Argentine Republic.
Since smart contracts are digital contracts powered by Blockchain technology, the two Cardano ambassadors also signed legal documentation that includes the date, time, and transaction details, such as the transaction ID and wallet addresses.
Read also: Argentina Looks to El Salvador’s Bitcoin Policy for Insight
According to Andreoli, the next step is to educate judges about the significance and legal enforceability of smart contracts. This will help create favorable jurisprudence in the country and facilitate commercial transactions.
Andreoli added that the same concept can be applied to various legal agreements, such as rental agreements, purchase agreements, and other legal business transactions.
Argentina’s economic challenges have prompted the country to consider the example of Bitcoin-friendly economies like El Salvador. Argentine authorities are studying El Salvador’s Bitcoin adoption and legal framework. El Salvador’s President Nayib Bukele even visited Argentina’s Congress for discussions.
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