Spain: People’s Party Proposes Bill to Allow Crypto for Mortgage Payments

Spain: People’s Party Proposes Bill to Allow Crypto for Mortgage Payments

August 3, 2021

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The People’s Party (PP) of Spain wants to promote the use of cryptocurrencies, and it proposes allowing them to be used not only for mortgage payments by homeowners but also for companies in the real estate sector and fund managers to use their own cryptocurrency to buy groups of mortgages from banks in securitization processes.

These are two of the core proposals advocated by the bill for Spain’s digital transformation, through which they want to provide the groundwork for this transition, make it easier for businesses, and control the use of disruptive technology.

Blockchain to Be Leveraged across the Public Sector

In addition to introducing cryptocurrencies into the mortgage system – the bill also proposes that banks use blockchain technology to manage mortgages, insurance, and streamline indemnities – it also proposes extending it to insurance policies, with ‘smart contracts’ with conditions based on the procedures to be followed, verification processes, and potential incidents.

Furthermore, blockchain technology is applied in the food chain as well as the health sector, with passports given to product labels to maintain evidence of origin and ownership of medical records.

Crypto & Blockchain Companies get Tax Benefits for Innovation

Additionally, the PP will help digital technology companies by offering a tax cut in order to foster this sort of innovation by putting them within the groups receiving a deduction for R&D costs. This deduction of 25% of expenditures incurred, and higher even if expenses surpass the average of the previous two years, would be raised by five points for two years under the PP plan.

Businesses that utilize cryptocurrencies and blockchain technology may also benefit from the deductions for technical innovation, which allow for a complete fee deduction under certain circumstances.

This is not the only tax break suggested by the PP; it also intends to include firms that use artificial intelligence (AI) in software projects and those that work with remotely piloted civil aircraft, popularly known as drones, in this category of deductions.

Regulators in Spain seem to be actively looking to establish a solid foundation for the blockchain and crypto industry to thrive upon.

Meanwhile, back in June, the Spanish Socialist Party (PSOE), Spain’s ruling political party, suggested the formation of a research committee to examine the feasibility of implementing the digital euro as a public digital currency.

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