The Cardano network became the first to host a legally enforceable smart contract in Argentina amidst increased traction.
The Cardano network’s apparent traction in Argentina has reached a new milestone after the blockchain recently hosted the first legally binding smart contract, fully compliant with the country’s laws. For context, a smart contract is an on-chain program that automatically executes an action in compliance with agreed-upon terms.
In a tweet on Tuesday, Cardano ambassador Mauro Andreoli revealed that Cardano has achieved a significant milestone after he signed a judicially enforceable blockchain-based agreement with fellow ambassador Lucas Macchiavelli.
Smart Contract Details
Per the smart contract, Macchiavelli received 10,000 ADA ($3,362 at the current market price) from Andreoli, payable at a 10% interest rate for four months.
The agreement was also legally notarized, with both parties providing certain information. This included the network where the smart contract was initiated, the wallet address, and the transaction ID. The legal document also contained data like the two Cardano ambassadors’ names, addresses, and identity numbers.
Meanwhile, Macchiavelli confirmed the receipt of the 10,000 ADA in a tweet, teasing he would invest them in Cardano native tokens. He noted he would reveal further details of the venture when the contract ends.
Okey Let’s settle this Cardano Community🗳️🗳️@MauroAndreoliA just lent me 10k in Argentina’s 1st ADA contract😉🇦🇷
Planning on investing them in CNTs. I’ll review results after 90 days, when the contract is over.
Which Project should I get? 👇👇
— Lucas Macchiavelli (@LucasMacchia2) October 10, 2024
Move to Fast-Track Widespread Adoption
Andreoli stated that the smart contract agreement would foster the adoption of the technology among corporate bodies in Argentina to draft commercial transactions. He also asserted that it would create a system where the judiciary acknowledges smart contracts as a means of legal agreement.
The Cardano ambassador further implied that the technology’s scope is not limited to loan applications. Andreoli insisted that smart contracts could be used in agreements like rentals, purchases, and other legal transactions.
Furthermore, Andreoli stated that Argentina already has legal frameworks for contracts of this nature. He cited the Argentine Civil and Commercial Code and the Presidential Decree 70/23, issued by the incumbent crypto-friendly president, Javier Milei.
Notably, under the new Milei leadership, Argentina has ramped up its digital asset adoption. An earlier report shows that Cardano founder Charles Hoskinson will discuss crypto adoption with President Milei in a conference later this month.
It bears mentioning that digital assets and blockchain technology have recently gained increased real-world utility. In September, an English court recognized stablecoin Tether as property in a fraud-related legal battle. This also came after a legal entity classified cryptocurrencies as a means of salary payment in the United Arab Emirates.
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