A draft law in respect of “digital transformation” has been proposed by the Spanish lawmakers who think that crypto can be utilized for the settlement of mortgages. The lawmakers, particularly from the Spanish Popular Party, proposed law through a Bill called “digital transformation law”. The Bill provides for benefits and tax concessions to those who will be adopting digital transformation for the settlement of mortgages. The Bill also seeks to convince banks to adopt digital transformation.
Spanish lawmakers believe that there is a gap in the settlement of mortgages which can be filled in by adopting digital transformation.
A draft of the legislation has been prepared in Spain by a few of the lawmakers belonging to the Spanish Popular Party. The proposed law has been named the “Bill for Digital Transformation”. The Bill aims to manage and authenticate the usage and adoption of innovative technologies such as blockchain, crypto, and AI in Spain. Though the Bill provides for multifarious proposals, yet there is one proposal that is specifically related to house mortgages.
The lawmakers intend that mortgagors and mortgagees should be allowed to utilize crypto for the settlement of mortgages. The proposal evidently encourages the usage of virtual assets as a source of exchange. The lawmakers have even gone on to suggest that the option of settlement of mortgages through crypto should be extended to investment firms as well. The law suggests that investment firms should be allowed to develop their own virtual assets for acquiring mortgages from financial institutions.
The proposal further intends to integrate the banking sector into the digital transformation. For the banks, the law suggests that the adoption of crypto, blockchain, and smart contracts for executing tasks of mortgage settlement will be highly beneficial.
The draft legislation also proposes incentives and tax concessions to those adopting the intended mechanism. In case the mortgagors and the mortgagees adopt digital transformation, they can claim the exemption in tax to a certain limit. For instance, the concession could be up to 25%, according to the draft Bill. However, the concession could be bigger than 25% depending on a case-to-case basis.
The technologies relating to the Internet of Things (IoT) as well as AI, too have been duly considered in the draft legislation. Spanish lawmakers believe that both of these technologies are rendering various solutions to consumers and service providers. This would make logical sense if both of these technologies can be made part of the digital transformation.
Spanish Government is vigorously keen on regulating its technology sector and virtual asset industry. Very recently the Congress of Spain has introduced pecuniary law in respect of corporate fraud-related crimes such as non-disclosure of crypto holding by the taxpayers. Under the law, the Government has introduced hefty monetary penalties against taxpayers who deliberately made no disclosure of their crypto entitlements.