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Spanish lawmakers discuss proposal to enable mortgage payments with cryptocurrencies



Spanish lawmakers are talking about a new law that would allow Spanish citizens to offset their mortgage bills with cryptocurrencies. The proposed law will also cover, among other elements, innovations in the cryptocurrency market, Blockchain, and artificial intelligence (AI), while conferring on them a legal robe.

Spain's new proposal is an indication that cryptocurrencies are gaining widespread adoption. The introduction of crypto payments in the mortgage sector will align cryptocurrencies for another use case and more relevance. Spain has been active when it comes to the regulation of blockchain technology and cryptocurrencies. In July, Spanish authorities passed an anti-fraud law that imposes a fine on investors who fail to declare their crypto assets in accordance with tax filing rules.

Lawmakers discuss tax breaks for blockchain companies

However, the new law appears to take a moderate approach to regulations. The proposal even suggests tax breaks for organizations that use and create solutions based on crypto and blockchain innovations, including smart contracts. Interestingly, the proposed law advocates an integration between smart contracts and traditional banking institutions, so that banking operations can be automated.

As the lawmakers pointed out, they reasoned that automating banking frameworks would allow these emerging technologies to be used in conducting routine activities, such as mortgage servicing, and would facilitate compensation and settlements obtained from insurance companies. The proposed law also evaluates the possibility that citizens who have taken out mortgages on their houses will compensate them with cryptocurrencies, giving more importance to these crypto markets.

Spanish companies can create their tokens to obtain mortgages

Furthermore, the proposal also leaves room for investment firms to create their own tokens to obtain mortgages from banking institutions. Regarding the tax incentives suggested by the proposed law, companies that take advantage of blockchain and crypto innovations could receive an exemption of up to 25%, depending on the prerequisite. In addition, Spanish companies that use cryptocurrencies could also receive exemptions, thus encouraging the adoption of cryptocurrencies within the country.

The prevailing perception of cryptocurrencies in Spain still borders on skepticism. Investor skepticism is based on the anti-fraud law that requires them to declare their crypto assets after making some profit. However, the proposed law may gradually erase your perceptions about cryptocurrency investments.

Meanwhile, the European Central Bank is investigating a central bank digital currency that will gain mass adoption in EU member states. Spain's national bank has shown no willingness to introduce the country-backed CBDC. Perhaps the proposed law, if passed, will pave the way for the emergence of innovations in both the cryptocurrency and blockchain sectors, including a CBDC announcement from the Spanish government.


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