Keeping in line with their aim of digitizing every service and good offered in Malta, the Maltese government has introduced new provisions to which make it mandatory for ,property rental contracts to be registered on a blockchain.
One of the prime drivers of this decision is the need for formalizing and ensuring security for the bilateral agreements that different parties enter into when it comes to rent contracts. Often we hear instances of disputes over these rent contracts which stem from the lack of a formalized and legal document that both parties enter into, and which clearly outlines the terms of this agreement.
Now that the government has decided to introduce blockchain technology in the process, it is expected that there will be lesser disputes or disagreements over the terms and conditions of these agreements.
Malta’s Prime Minister, Joseph Muscat said:
“We will now be showing people the added value of this technology through applying it to something which they will use in their daily lives. Such a contract cannot be tampered with and only those authorised will be able to access it. This shows how the digital transformation will affect their lives.”
The new regulations have already been approved by the cabinet and shall be made public in the next few days. The motive behind this move is to make rent contracts immutable and shield them from any manner of tampering.
Malta has been a frontrunner when it comes to adopting new technologies and embracing digital currencies. This legislation once again is an exemplary move for the rest of the world to look up to, and realize the multiple applications of blockchain technology and its highly beneficial advantages. After all, Malta is often referred to as the “blockchain island”, so it only makes sense that they will be paving the way ahead and setting standards for the rest of the world to adapt.