Cardano has marked an important legal milestone in Argentina by signing what is described as the first legally and judicially enforceable contract on the ADA blockchain network, which is fully compliant with Argentine law. On October 8, Cardano ambassador and member of the Interim Constitutional Committee (ICC) Mauro Andreoli Announce X (formerly Twitter) expressed that he and fellow ADA Ambassador and Token Allies co-founder Lucas Macchiavelli have formalized a loan agreement using the Cardano network.
“We have done so, we have just signed the first legally and judicially enforceable contract on the Cardano network, in full compliance with the laws of the Argentine Republic. What does this mean? This means that thanks to the legal framework provided and the process implemented, any breach can be enforced in court to perform the obligation in ADA,” Andreoli noted.
Cardano adoption in Argentina
The contract includes a loan of 10,000 ADA, payable within four months at an interest rate of 10%. A transaction is authenticated with its transaction ID, providing verifiable proof on the blockchain. Andreoli noted that the legal document includes important details such as network specifications, wallet addresses, and the transaction ID of the loan agreement.
“This provides evidence and simplifies procedural steps, representing the initial stage of creating an appropriate jurisprudence in the country and facilitating business transactions,” Andreoli said. He added that this development serves as a precursor to future legal smart contracts, laying the foundation and strengthening the system.
Andreoli stressed the importance of educating the judiciary about blockchain technology but expressed confidence in the current legal framework. “We have a strong legal framework for contracts based on the Argentine Civil and Commercial Code and Presidential Decree No. 70/23 issued by President Miley,” he said. While he could not share the entire contract due to sensitive personal information, he noted that this approach could be applied to various legal transactions, such as real estate rentals and purchase agreements.
He also highlighted that this structure could benefit companies within the ADA ecosystem, including NMKR, Emurgo, Lagon, and PALM Economy, by enabling them to legally structure their businesses using the Cardano network. “These organizations can benefit from the results and benefits of this development, ensuring a strong legal framework for their business activities,” Andreoli said.
The Cardano Foundation acknowledged the achievement, commenting via X: “Great work, Mauro Andreoli! Your dedication and hard work for the Cardano community does not go unnoticed. I continue!”
This development comes ahead of the scheduled visit of Cardano founder Charles Hoskinson to Argentina to attend the Cardano Summit 2024 in Buenos Aires later this month. Hoskinson is scheduled to meet with Argentine President Javier Miley on October 19 at the Argentine Technology Forum to discuss the future of blockchain technology and the cryptocurrency economy.
At press time, ADA was trading at $0.3368.
Featured image created with DALL.E, a chart from TradingView.com
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