Andorra at the forefront of blockchain and the circular economy
The parliament has been working on it for a long time and finally two key texts for the future development of our country have arrived, both published on July 20, 2022, in the BOPA: the so-called “Digital Assets Law” and the Circular Economy Law.
Regarding the Law on digital assets, it is worth saying that Andorra has been a pioneer in every sense (there is only a similar text in Liechtenstein, in force since 1 January 2020). In fact, the Andblockchain Committee of the Andorran employers’ association CEA started to talk about it, which actively influenced some political parties to start working on it, and with the evolution of time the “committee” became an Association, and from the political development, a legislative process was started that has culminated in the legal text of reference, with which the Principality of Andorra presents itself to the world as an agile, resilient, transparent jurisdiction with a strong commitment to new technologies, seeking to create the best conditions to establish and evolve as a suitable location for innovative companies, especially those closely linked to blockchain and LRD/DLT technology. The blockchain is key in digital identification processes, cryptocurrencies, electronic voting, smart contracts, security, and privacy or NFT and obviously needed a legal framework that provided legal certainty, consumer protection and market integrity.
As an absolutely atypical fact in the legislative technique, the text that we are analysing introduces to the explanatory memorandum an unusual analogical but tremendously pedagogical historical reference for the experts of the subject and it is the fact that, in a certain way, the blockchain is strongly linked to the history and the DNA of Andorra, the blockchain is strongly linked to the history and DNA of Andorra, since in 1580 the Armari de les Sis Claus (Seven since 1978) was acquired, which kept the basic and foundational documentary fund of the country and that, in order to open, it was necessary that the 7 consuls, at the same time and simultaneously, introduced their key to open the armoury. Maybe the Armory of the Seven Keys is the origin of the Blockchain? Who knows! The truth is that Andorra wants to consolidate itself as a European reference in blockchain technology in order to provide the Principality with a significant competitive advantage over other countries, generating the opportunity to attract important foreign private investments and new business models. Even so, there is still much to be done, as the text does not yet go into the financial aspect, which is still a long way off, but which is absolutely necessary, so we encourage our governments to be courageous and contribute to creating the complete legal framework that will provide the sector with unbeatable legal certainty.
And what about the new circular economy law? Well, Andorra is a country tremendously committed to the health of the planet. Through this text, it seeks to achieve the Sustainable Development Goals (SDGs) of the United Nations to which Andorra has adhered, thus moving towards a circular economy with less carbon. In this sense, Andorra is a non-industrialized country that does not participate in the production of goods, but as consumers, it is important to change our habits, and therefore, it is necessary to create a framework to promote a more sustainable consumption of goods and services. To this end, it establishes a waste management policy that promotes reuse and recycling and seeks to reduce energy recovery.
And how to move towards the circular economy? Well, the law makes it very clear: Promoting more sustainable consumption models; minimizing the consumption of single-use products; reducing food waste; promoting economic development, job creation and the generation of conditions that promote sustainable development without the consumption of non-renewable resources; promoting ecological design in products and services; improving waste management by minimizing waste generation, increasing reuse and recyclability; ensuring that products and services are more durable, reusable, upgradeable and repairable, and ultimately, raising public awareness so that the concept of circular economy becomes its standard.
In conclusion, therefore, Actius Digitals/Blockchain and Circular Economy are now two new concepts that Andorra must use to face the future with optimism!
Augé Legal & Fiscal