What significant step did the United Nations take in 1996 regarding electronic commerce?

In 1996, the United Nations took the significant step of adopting the Model Law on Electronic Commerce. This model law was essential in providing a legal framework for the use of electronic communications and transactions in national and international commerce. It aimed to facilitate the acceptance and recognition of electronic documents and signatures, thereby promoting the growth of electronic commerce by ensuring that electronic contracts would be treated similarly to traditional paper contracts in legal terms.

The adoption of the Model Law was a pivotal moment because it helped various countries modernize their legal frameworks to accommodate the rapid growth of the internet and online business activities. By establishing guidelines that nations could adopt and adapt to their own legal systems, the UN sought to enhance legal certainty and consumer protection in electronic transactions. This initiative was crucial in fostering confidence among businesses and consumers engaging in electronic commerce on a global scale, ultimately supporting the advancement of the digital economy.

In contrast, other options such as establishing international trade regulations or creating a new currency for online transactions do not accurately reflect the actions taken by the United Nations in that year. Additionally, disallowing electronic contracts would have completely contradicted the purpose of promoting electronic commerce. Therefore, the correct answer underscores the importance of legal recognition and regulation of electronic transactions, which has continued to shape the