 Cardano hosts first smart contract legally enforceable in Argentina 
2024-10-10

Cardano is now host to the first legally enforceable smart contract on its network, which was signed in and is under the jurisdiction of Argentina’s courts.
The contract is a loan agreement between Cardano ambassadors Mauro Andreoli and Lucas Macchia for 10,000 Cardano (ADA) tokens — worth $3,380 — payable in 4 months at an interest rate of 10%. 
It’s the first time an Argentine court could enforce full payment in ADA from a Cardano smart contract, Andreoli explained in an Oct. 8 X post.
Andreoli and Macchia also signed an accompanying legal document underpinning key details of the smart contract loan, including the blockchain and wallet used along with the transaction ID.
Andreoli said the “milestone” could fast-track Argentine courts more broadly acknowledging smart contracts as a technology to facilitate commercial agreements.
He added such smart contracts can be applied to the rental of houses, purchase agreements or other legal contracts.
Argentina already has a “robust legal framework” for commercial contracts, but Andreoli said the next step is to educate judges.
Argentina legalized the use of Bitcoin BTCUSD and other cryptocurrencies in commercial contracts in December 2023 — 10 days after anti-central bank libertarian Javier Milei took office as president.
The contract comes ahead of Cardano’s founder Charles Hoskinson’s scheduled meeting with Milei at the Cardano Summit 2024 in Buenos Aires later this month.
Other court systems have accepted crypto technology when carrying out legal proceedings.
In August 2023, a United States court used an enforcement tool on a blockchain to lock several sanctioned individuals out of their crypto wallets.
In 2022, the High Court of England and Wales allowed the use of a non-fungible token (NFT) to deliver a lawsuit to a defendant.
Later that year, a Florida federal court also allowed suit to be served via an NFT to the wallets of alleged crypto thieves, as the defendants were unknown.