A group of legislators in Spain are fashioning a legislation that will introduce the possibility of paying mortgages with cryptocurrency.
A draft proposal of the Digital Transformation Law is giving different incentives for companies and organisations using, and developing solution technologies, including tax cuts.
Banks are also included in the regulation, and the draft includes the use of smart contracts for managing some processes in these organisations.
The legislators who are from the Popular Party in Spain, want regulate and legalise several new technologies like cryptocurrency, blockchain, and AI in the country. Among its numerous proposal the draft bill contemplates, there is a possibility of house owners paying their mortgages with cryptocurrencies, enticing the use of these assets as means of exchange.
But, the proposal also extends this functionality to investment firms to create their own cryptocurrency for buying mortgages from banks too. It also contemplates the modernisation of the structure of banks that will be able to use blockchain, cryptocurrencies, and smart contracts to carry ordinary processes such as mortgage management.
The draft law is equally seeking to streamline compensation and settlements derived from insurance policies. Blockchain technologies are also contemplated to see used in supply chain applications, and in medical processes.
The draft also includes several tax exemptions for companies and organizations providing solutions and developing these technologies on Spanish soil. Tax cuts for these companies are proposed to reach 25% and even more, depending on some conditions.
Companies using cryptocurrency could also apply for a technological innovation deduction. This would entice the use of cryptocurrencies as it presents a clear benefit for using them. Artificial Intelligence and the Internet of Things (IoT), emergent technologies that are also present in several solutions are equally regulated in the draft, which establishes several benefits for these service providers.
Spain has been very aggressive when it comes to regulating big tech and cryptocurrency. Just last month, its congress passed an anti-fraud law that establishes harsh penalties for users who fail to disclose their cryptocurrency holdings for tax purposes.
This law also established limits on the number of euros that can be paid in cash per transaction, with the objective of improving tax collection and control capital movements across the country and the European Union.