Blockchain technology to make rental agreements inviolable – Joseph Muscat
Joseph Muscat hatches out his intentions to incorporate blockchain technology to the tenancy process
During a live interview conducted on Radio One on the 23rd of June, Joseph Muscat spoke of his action plan to incorporate blockchain technology to the housing market. The news came about following the PM’s announcement of a reform to the rent law.
Joseph Muscat has announced that every rental contract sedimented in Malta is to be registered on a distributed ledger. Such a technology has been introduced to the rental process following the inflation that the housing market experienced in the past years. This issue, at present, sees YMCA receiving an average of 191 homeless cases. All the while, it is approximated that another 2,000 people have been driven to live in garages. For this reason, the new rent law seeks to safeguard the rights of tenants, as well as those of landlords. The law is said to have received the cabinet’s approval following a lengthy consultation period.
In the circumstance that an individual decides to sign a tenancy agreement, the new rent law dictates that the contractual agreement is to be registered to a blockchain distribution ledger. In addition to the agreement, the landlord is responsible for uploading information with regard to the inventory of the entire property as well as the details of the deposit paid. Whilst the system is public, the PM stressed that the data is to remain completely private. Muscat stated: “The way in which the contract will be secured ensures that no one can tamper the document. The contact will only be regulated by the people who have access to it, thanks to this technology.” Contracts that fail to meet the necessary criteria, on the other hand, will not be registered. The Housing Authority has been tasked with overseeing the project.
In a press release streamed to Facebook on Wednesday, Joseph Muscat outlined the present situation of the housing market – unregulated. For this reason, the blockchain technology is expected to prevent contracts from being set in place without proper, legal documentation. The Maltese PM said: “We will be showing people the value of this technology with something they face every day. This serves to show how the digital transformation will affect their lives.”
Malta first entered the crypto empire in July 2018, following the establishment of a regulatory framework regarding the blockchain technology. Since then, the island has come to be known as the Blockchain Island for its strives in the industry. Such conditions will be discussed at the A.I. & Blockchain Summit being held in November.