A new digital transformation law proposal, written by a group of legislators in Spain, introduces the ability to pay off mortgages using cryptocurrency. The bill also provides various incentives for companies and organizations to use and develop solutions using these technologies, including tax cuts. Banks are also included in the regulation, and the project provides for the use of smart contracts to manage some of the processes in these organizations.
Spain will include cryptocurrency in its mortgage system
New draft law on digital transformation, presented A group of legislators from the People’s Party of Spain will regulate and legalize several new technologies in the country, such as cryptocurrency, blockchain and artificial intelligence. Among his many proposals, he is considering the possibility that homeowners will pay for their mortgages with cryptocurrencies, prompting them to use these assets as a medium of exchange. But the proposal also extends this functionality to investment firms that create their own cryptocurrency to buy mortgages from banks.
The proposal also provides for the modernization of the structure of banks, which will be able to use blockchain, cryptocurrencies and smart contracts to carry out common processes such as mortgage management, as well as to optimize compensation and settlements based on insurance policies. It is also expected that blockchain technologies will be used in supply chain applications and in medical processes.
Tax cut for adoptive parents
The proposed project includes several tax incentives for companies and organizations offering solutions and developing these technologies on Spanish soil. Tax cuts are proposed for these companies up to 25% or more, depending on certain conditions. Companies using cryptocurrency can also apply for a technology innovation deduction. This will encourage the use of cryptocurrencies as there are clear benefits to using them.
AI and the Internet of Things (IoT), emerging technologies that are also present in several solutions, are also regulated in a project that sets a number of benefits for these service providers.
Spain is very aggressive about the regulation of large technologies and cryptocurrencies. Just last month, the Spanish Congress past an anti-fraud law that imposes severe penalties on users who do not disclose their cryptocurrency assets for tax purposes. This law also set limits on the amount of euros that can be paid in cash per transaction in order to improve tax collection and capital controls across the country and the EU.
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