Opposition Spanish Party Introduces Bill To Allow Cryptocurrency Mortgage Payments

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The bill will be discussed in the Spanish Congress.

Partido Popular (PP), a leading opposition party in Spain, has introduced a bill that will allow mortgage payments with cryptocurrencies and create a national cryptoasset council to analyze the implications of cryptocurrency and blockchain use in that country.

According to the text of the Digital Transformation Law, homeowners will be able to use cryptocurrency to pay for their mortgages, and the real estate sector will be able to use cryptocurrency to invest in mortgage pools. Banks, on the other hand, will be able to use blockchain as a system to manage mortgages and insurance, and make it easier to pay compensation using digital currencies.

According to PP, the bill aims to ensure that cryptocurrency transactions are “carried out within the framework of trust, security and transparency.”

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According to lawyer Christina Carrascos, CEO of ATH21, a law firm specializing in cryptocurrency, this project is innovative as it implies the recognition of cryptocurrency as a means of payment due to its ability to write off debts.

So far, she added, banks do not accept payments in cryptocurrency.

Karraskosa added that in order to implement the law, it is necessary to change the legal category of cryptocurrencies: from the current status of “medium of exchange” to “means of payment”.

The PP project, presented on July 26, also proposes the creation of a national cryptoasset council (CNC) to provide advisory services. It will include representatives from the General Directorate of the Treasury, the National Commission for the Securities Market and the Central Bank of Spain.

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According to the proposal, the CNC will study and analyze the implications of using cryptoassets and other services using blockchain, assess the implementation of blockchain in public administration, and ensure that mechanisms are in place to detect fraud and tax evasion.

The proposal adds that cryptocurrencies can be accepted as a medium of exchange between two parties while “meeting private obligations to the extent that they are freely agreed upon by the parties to the transaction as alternative, negotiable and immediate payment methods and are not used for any other purpose other than how to serve as such. “

The bill clarifies that private obligations associated with exchanging goods or services with cryptocurrencies will be subject to the same tax regime as monetary transactions, without prejudice to tax liabilities that are consistent with organizations issuing cryptocurrencies or exchanges.

The use of cryptocurrencies as a medium of exchange is currently allowed in Spain after two judgments of the Court of Justice of the European Union in 2014, so the provisions of the proposal are not new, Carrascos said.

The project also states that cryptocurrencies or tokens issued through an initial coin offering will be treated as negotiable securities and that investments of less than € 6,000 via ICOs will not have to be reported to the authorities.

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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.

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