In Spain, a new proposal for a digital transformation law drafted by a group of Spanish politicians would allow mortgage payments to be made in cryptocurrency.
The new plan proposed by lawmakers from Spain’s Popular Party would regulate and legitimate a slew of developing technologies in the country, including Bitcoin, blockchain, and artificial intelligence (AI). Other advantages, such as tax exemptions, are also included in the draught law for enterprises and organisations who use and develop solutions based on these technologies. For example, the draught proposes for smart contracts to manage numerous processes in banks that would be covered by the law.
The law includes the possibility of homeowners paying their mortgages using cryptocurrencies, promoting the usage of these assets as a means of exchange. The idea does, however, allow investment firms to create their own cryptocurrency in order to purchase mortgages from banks.
This draft includes a number of tax incentives for companies and organisations that supply solutions and develop these technologies in Spain.
For example, tax savings for these enterprises are expected to be as high as 25%, and possibly even more, depending on certain requirements.
However, the modernization of bank structures would allow for the use of blockchain, cryptocurrencies, and smart contracts to carry out regular tasks such as mortgage administration, as well as to simplify compensation and settlements created by insurance policies.
Companies that employ cryptocurrency may be entitled for a tax credit for technical innovation. As a result, the adoption of cryptocurrencies is encouraged because there is an obvious advantage to doing so.