Spanish lawmakers from the opposition Partido Popular (People’s Party) have proposed a sweeping new law aimed at accelerating cryptocurrency adoption throughout the country.
The Digital Transformation Law aims to deliver a wealth of reforms that could revolutionise the traditional Spanish banking and financial services sector.
Real estate is a primary feature of the legislation, with initial proposals including cryptocurrency as a legalised tender for the repayment of mortgages, and an innovative financial product that could see large real estate companies such as REITs launch its own securitised crypto token that would underpin the acquisition of mortgages.
The bill aims to safely deliver the Spanish finance industry into the encroaching world of crypto’s disruptive technologies, with recommendations for the usage of blockchain technology in banks and the implementation of smart contracts for insurance products.
However, the proposals aren’t limited to finance – with the bill also mandating the use of blockchain food passports to ensure food safety and standards throughout lengthy supply chains, alongside immutable patient-owned blockchain medical records.
Tax Incentivisation
To encourage industrial adoption, the conservative People’s Party has included measures aiming at providing tax incentivisation for businesses that bring in blockchain technologies, or work in the DeFi and crypto spaces.
Research and development activities will be made tax deductible up to 25%. This extends to companies researching drone technology and artificial intelligence.
The bill also proposes the extension of a new ethical code for artificial intelligence, and the creation of a sandbox environment for the testing of new crypto regulations.
Many analysts point to the wave of crypto adoption in Central America as a key driving factor in the introduction of this bill, indeed the Spanish-speaking world represents the largest market share in the crypto industry.
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