A new proposal for a digital conversion law written by a group of legislators in Spain will introduce the possibility of using cryptocurrency to pay for mortgages. The draft law also provides different incentives for companies and organizations that use and develop solutions that use these technologies, including tax cuts. Banks are also included in the regulations, and the draft includes the use of smart contracts to manage some processes in these organizations.

Spain will add cryptocurrency to its mortgage system

The new draft of the Digital Conversion Law proposed by a group of legislators from the Spanish People’s Party will supervise and legalize a number of new technologies such as cryptocurrency, blockchain and artificial intelligence in the country. Among its many proposals, it considers the possibility of homeowners using cryptocurrency to pay for mortgages, inducing the use of these assets as a means of exchange. But the proposal also extends this feature to investment companies to create their own cryptocurrency and can also purchase mortgage loans from banks.

The proposal also considers the modernization of the bank structure, which will be able to use blockchain, cryptocurrency and smart contracts for common processes such as mortgage management, and simplify the compensation and settlement from insurance policies. Also consider using blockchain technology for supply chain applications and medical procedures.

Tax cuts for adopters

The proposed draft includes a number of tax exemptions for companies and organizations that provide solutions and develop these technologies on Spanish land. According to certain conditions, it is recommended that tax cuts for these companies reach 25% or more. Companies using cryptocurrencies can also apply for technological innovation deductions. This will attract the use of cryptocurrencies because it brings obvious benefits to their use.

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Emerging technologies such as artificial intelligence and the Internet of Things (IoT) also exist in a variety of solutions, and the draft also regulates them, bringing multiple benefits to these service providers.

Spain has been very active in regulating large technologies and cryptocurrencies. Just last month, the Spanish Congress passed an anti-fraud law, imposing severe penalties on users who fail to disclose their cryptocurrency holdings for tax purposes.The law also limits the amount of euros that can be paid in cash for each transaction, with the aim of improving taxation and controlling capital flows across the country and the EU

What do you think of Spain’s new draft law on digital transformation? Tell us in the comments section below.

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