TechFlow news, October 15 — According to Bitcoin.com News, Argentina's judicial authorities recently recognized the legal validity of blockchain-based smart contracts for the first time, marking a major 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 rental agreements and purchase payments. The first legally recognized smart contract was a loan agreement built on the Cardano blockchain. The contract was executed between two Argentine Cardano ambassadors, Mauro Andreoli and Lucas Macchia, involving a four-month loan of 10,000 ADA (approximately $3,430 USD) at an annual interest rate of 10%.
Andreoli stated: "We have just signed the first fully legally and judicially binding contract on the Cardano network that complies with the laws of the Argentine Republic." He emphasized that this means any breach of contract can be enforced in court with obligations fulfilled in ADA. To ensure the legal validity of the smart contract, both parties also signed a supplementary legal document detailing the contract terms, the blockchain used, and the transaction IDs of the associated wallet addresses. This approach could become the standard procedure for legitimizing smart contracts in the future.
