Argentinian Province Mendoza Starts Accepting Tax Payments in Crypto – News Bitcoin News

Mendoza is an Argentinian Province that has developed a system which allows taxpayers to fully pay their taxes using cryptocurrencies. The Mendoza tax authority launched the system this week as part of its strategic push to digitalize payments and modernize them. To process transactions, a third party is used.

Mendoza adopts crypto for tax payments

Because of their popularity, more and larger governments include cryptocurrencies in the way they pay state-related obligations. Mendoza is a province in Argentina that has implemented a digital system that allows taxpayers and others to make payments using digital currency.

Launched on August 24, the system is part a strategy move made by the government of the province in order to modernize payment of taxes and state tributes. Citizens have several options for fulfilling their obligations. Nicolas Chávez, general director of the Mendoza tax administration authority, stated:

This is another way to make it easier to pay taxes. We have integrated new technology such as virtual wallets or cryptocurrencies into this service provided by the payment processor.

Although the payment utility is embedded directly in the page for the province, it’s processed by a third-party firm that accepts crypto. The company also liquidates payments made to Argentina in Argentinian Pesos. Payments to the system are only accepted in stablecoins (USDT, USDC, DAI and others). This allows the system to maintain volatility in its operations.

Similar Initiatives

Other local governments, both in Argentina as well as Latam, have already announced the use of cryptocurrency to pay taxes. The head of Buenos Aires’ government, Horacio Larrata, stated last April that crypto payments would be introduced for taxes. Larreta indicated that such a use case would be possible in 2023, along with a blockchain-based ID system.

Rio de Janeiro is one of Brazil’s largest cities. They also announced the inclusion of these assets in tax payments in 2023 because of their popularity. But Rio’s plans go even further, envisioning crypto payments for other services like taxi rides, and NFTs to promote the areas of arts, culture, and tourism, as well as investing part of the city funds in crypto through a new institution, the Municipal Committee for Crypto Investments.

In this story, tags
Argentina, ATM, Bitcoin, Buenos Aires, Cryptocurrency, DAI, Investments, Mendoza, nicolas chavez, Payments, rio de janeiro, Stablecoins, Taxes, Tether, USDC

Let us know your thoughts about Mendoza including crypto as a means of paying taxes. Comment below.

Sergio Goschenko

Sergio is a Venezuelan cryptocurrency journalist. His entry into the cryptocurrency world in December 2017 was when it saw a price surge, and he describes himself as being late to this game. His background is in computer engineering, but he also lives in Venezuela and was impacted by the crypto boom at a socio-economic level. He offers an alternative perspective on cryptocurrency success and the benefits it has for the underbanked.

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