Smart Contracts

Argentina's judicial authorities have officially recognized the legal validity of smart contracts for the first time

ChainCatcher news, according to Bitcoin.com News, Argentine judicial authorities have recently recognized the legal validity of blockchain-based smart contracts for the first time, marking a significant breakthrough in the country's application of blockchain technology. This decision grants smart contracts legal enforceability in Argentina, paving the way for their use in commercial areas such as lease agreements and purchase payments.It is reported that the first legally recognized smart contract is a loan agreement built on the Cardano blockchain. The contract was reached by two Argentine Cardano ambassadors, Mauro Andreoli and Lucas Macchia, involving a four-month loan of 10,000 ADA (approximately $3,430) at an annual interest rate of 10%.Andreoli stated, "We have just signed the first contract on the Cardano network that is fully compliant with the laws of the Argentine Republic and has legal and judicial binding force." He emphasized that this means any breach of contract can be enforced in court to fulfill obligations in ADA. To ensure the legal validity of the smart contract, both parties also signed a supplementary legal document detailing the contract's content, the blockchain used, and the transaction ID of the relevant wallet addresses. This practice may become the standard procedure for the legalization of smart contracts in the future.
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