A new proposal for a digital transformation law written by a group of Spanish legislators would allow mortgage payments to be paid with cryptocurrencies in Spain.
In fact, the new draft submitted by legislators from Spain’s Popular Party would regulate and legitimize numerous emerging technologies in the nation, including Bitcoin, blockchain, and artificial intelligence (AI).
On top of that, the draft law also includes other incentives, such as tax breaks, for firms and organizations that use and create solutions based on these technologies. For instance, the draft calls for smart contracts to manage various operations in banks that the law would cover.
As a matter of fact, the modernization of bank structures would enable the use of blockchain, cryptocurrencies, and smart contracts to carry out routine activities such as mortgage administration, as well as to streamline compensation and settlements generated from insurance policies.
Encouraging the adoption of crypto
Whatsmore, the draft law considers the prospect of homeowners paying their mortgages with cryptocurrencies, incentivizing the use of these assets as a method of trade. However, the plan also allows investment firms to develop their own cryptocurrency in order to purchase mortgages from banks.
The suggested draft offers several tax breaks for businesses and organizations that provide solutions and develop these technologies in Spain. For instance, tax breaks for these businesses are projected to be as high as 25%, and maybe even more, depending on certain criteria.
Companies that use cryptocurrencies may potentially be eligible for a technological innovation tax credit. Thus, encouraging the adoption of cryptocurrencies since it provides a clear advantage for doing so.
Spanish citizens still have doubts
Roman Regelman, Chief Executive Officer of Asset Servicing and Head of Digital, stated, “Spain has the capacity to be a leader in digital assets.” However, the CEO confirmed:
“One of the reasons people are not comfortable with these types of investments is because there is no infrastructure to support them. If you have the most incredible asset, but you sell it in the corner store, as an investor, you are going to be worried. If you bring these operations to the main market, they increase their popularity.”
Generally, when it comes to regulating big tech and cryptocurrencies, Spain has been quite assertive.
Just last month, Spain’s parliament approved an anti-fraud law that imposes severe fines on individuals who refuse to report their cryptocurrency holdings for tax purposes.