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Author	Asst Prof TOTARO Davide Luigi
Organisation/Institution	Hitotsubashi University
Country	JAPAN
Panel	Information Technology Law
Title	Rule of Law vs. Rule of Code: Smart Contracts and New Challenges for Contract Law Paradigms in East Asia and Europe
Abstract	This paper explores the growing tension between traditional contract law and the emergence of smart contracts, highlighting a shift from the "rule of law" to the "rule of code". Smart contracts, often perceived as self-executing agreements with immutable terms, challenge foundational contract law principles, such as party intent, interpretative flexibility, and the availability of remedies. By automating contract execution, these digital agreements risk distancing contractual relationships from judicial intervention grounded in equity, discretion, or good faith. Built on blockchain platforms, smart contracts prioritize the certainty and predictability of automated processes over the nuanced judgment traditionally afforded by courts. To assess the legal impacts and regulatory inclusion of smart contracts, this study undertakes a comparative analysis, focusing on the integration of smart contracts in finance and commercial insurance sectors increasingly viewed as gateways to essential rights like healthcare, social security, and financial inclusion. Through a comparative lens between East Asia and Europe, the paper addresses: (i) the current state of smart contract regulation; (ii) primary legal challenges within contract law; (iii) notable regulatory and case law developments across Asian and European jurisdictions; and (iv) the potential for smart contracts, when coupled with self-learning AI trained on judicial decisions, to evolve from self-executing to self-interpreting instruments. The paper also explores cross-border enforceability issues and the divergent regulatory standards shaping code-based contracting, reflecting distinct legal cultures and economic priorities. Ultimately, it argues for a rethinking of contract law to harmonize the efficiencies of smart contracts with the need for legal flexibility, underscoring the importance of collaborative, transnational regulatory frameworks. This comparative perspective provides insights into how East Asia and Europe might benefit from regulatory cooperation as smart contract technology continues to evolve.
Biography	I hold a Ph.D. in Comparative Contract Law from the University of Milan and am a licensed lawyer in Italy. Currently, I serve as a lecturer at Hitotsubashi University, teaching courses in "Comparative Contract Law" and "AI, Law, and the Global Market". Alongside my experience with leading Italian and international law firms, I participated in an exchange program at Kobe University in 2018 and was a visiting research fellow at Waseda University from November 2022 to November 2023. My research focuses on comparative contract and insurance law, with a particular interest in Japanese law. Recently, I have expanded my research to include AI regulation and governance, Insurtech, and Fintech, exploring these areas both academically and practically. I am a member of several academic associations, including the Japanese Institute of Insurance Science (JSIS), the Italian Society for Research in Comparative Law (SIRD), the Italian-Japanese Association of Comparative Law (AIGDC) and the Italian Association for Research in Japan (AIRJ). Additionally, I serve on the editorial boards of journals such as the Italian East Asian Law Review (RIDAO). Lastly, have also contributed as a panelist at various international conferences, notably the 20th and 21st editions of the ASLI conference.