Digital Transformation Law Draft Would Allow Users to Pay Mortgages With Crypto in Spain

A new proposal of a digital transformation law, written by a group of lawmakers in Spain would introduce the possibility of paying mortgages with cryptocurrency. The law draft also gives different incentives for companies and organizations using and developing solutions using these 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 organizations.

Spain Would Include Crypto in Its Mortgage System

A new draft of a digital transformation law, presented by a group of lawmakers from the Popular Party in Spain, would regulate and legalize several new technologies like cryptocurrency, blockchain, and AI in the country. Among its numerous proposal, it contemplates the 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.

The proposal also contemplates the modernization of the structure of banks, that would be able to use blockchain, cryptocurrencies, and smart contracts to carry ordinary processes such as mortgage management, and to streamlining compensation and settlements derived from insurance policies. Blockchain technologies are also contemplated to see used in supply chain applications, and in medical processes.

Tax Cuts for Adopters

The proposed draft 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.

AI and the Internet of Things (IoT), emergent technologies that are also present in several solutions are also 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, Spain’s 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 E.U.