Cardano hosts first enforceable smart contract in Argentina

Cardano (CRYPTO:ADA) has facilitated the first legally enforceable smart contract in Argentina, following the country's legalisation of cryptocurrencies for use in commercial contracts in December 2023. 

The contract, a loan agreement between Cardano ambassadors Mauro Andreoli and Lucas Macchia, involves a loan of 10,000 ADA tokens (worth approximately $3,380), repayable within four months at an interest rate of 10%. 

This marks a significant milestone for both Cardano and the Argentine legal system, as the contract is under the jurisdiction of Argentine courts.

Andreoli shared the news on X, stating, “We did it, 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.” 

The agreement is further supported by a legal document detailing key aspects of the smart contract, such as the blockchain used and transaction IDs, ensuring transparency and legal accountability.

This development could potentially pave the way for broader adoption of smart contracts within Argentina’s legal system.

Andreoli emphasised that the contract represents an important step in creating favorable jurisprudence in the country, which could streamline the use of smart contracts for a variety of legal agreements, including house rentals and purchase contracts.

Argentina’s legal framework for commercial contracts is already well-established, but Andreoli noted that educating judges on the benefits of smart contracts would be a critical next step.

The announcement comes ahead of Cardano founder Charles Hoskinson’s scheduled meeting with Argentine President Javier Milei at the upcoming Cardano Summit 2024 in Buenos Aires. 

At press time, the Cardano price was $0.3391.