In Argentina, a smart contract based on the Cardano blockchain was issued to issue a loan of 10,000 ADA in the amount of about $3,430 with repayment at 10% per annum. This is the first legally binding smart contract in Argentina.

The smart contract is a four-month agreement between Cardano’s two representatives in Argentina, Mauro Andreoli and Lucas Macchia. Legal documentation includes the date, time and details of the transaction, including transaction ID and cryptocurrency addresses.

According to Andreoli’s tweet, the agreement was signed in full compliance with Argentine laws. Therefore, if one party breaks the contract, the other party to the agreement can file a lawsuit against him. Any violation of the contract may result in enforcement action.

Andreoli added that their next step will be to inform judges about the importance of smart contracts and their use in legal practice.

Smart contracts are digital contracts that operate on the blockchain, Andreoli explained. He suggested that smart contracts will make the legal environment more favorable and simplify commercial transactions. They can be used to conclude various types of documents, including lease or sale agreements.

In July, the country’s first joint-stock company was registered in Argentina, which included bitcoins and USDC stablecoins in its authorized capital. Previously, Argentina expressed its readiness to cooperate on the regulation of cryptocurrencies with El Salvador, which legalized Bitcoin in 2021.