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The Argentine province of Mendoza begins accepting tax payments in Crypto – News Bitcoin News
Mendoza, an Argentine province, has implemented a system that allows taxpayers to pay their taxes in full with cryptocurrencies. The system, which was launched this week, is part of a strategic push to modernize and digitize payments made by the tax authorities in Mendoza and uses the services of a third party to process the transactions.
Mendoza goes with crypto for tax payments
More and more governments are including cryptocurrencies as a way to pay government-related obligations due to their recent popularity. Mendoza, a province in Argentina, is one of the first in the country to implement a digital system that allows taxpayers to make payments and other operations with digital currencies.
The system, which was launched on August 24, is part of a strategic move by the provincial government to modernize the payment of taxes and state tribute, offering more options for citizens to meet their obligations. Nicolas Chávez, Director General of the Tax Administration of Mendoza, stated:
It is another door to facilitate the payment of taxes to the taxpayers. This is a service offered by the payment processor with which we have incorporated new technologies such as virtual wallets and cryptocurrencies.
While the payment tool is directly embedded in the province’s site, the payments are processed by a third-party company, which accepts crypto and settles the payments in Argentine pesos to the province. The system only accepts payments in stablecoins, including USDT, USDC and DAI, among others. In this way, the system maintains volatility out of operation.
Similar initiative
Other municipal governments in Argentina and in Latam have also announced the inclusion of cryptocurrencies as a means of payment for taxes. Last April, the head of the government of Buenos Aires, Horacio Larreta, announced that the city plans to also introduce crypto payments for taxes. Larreta stated that this use case could be implemented in 2023 along with a blockchain-based identification system.
Rio de Janeiro, one of the largest cities in Brazil, also reported the inclusion of these assets as payment for taxes in 2023 due to their popularity. But Rio’s plans go even further, envisioning crypto payments for other services such as taxi rides and NFTs to promote the areas of arts, culture and tourism, as well as investing part of the city’s funds in crypto through a new institution, the Municipal Committee for Crypto Investments.
What do you think about the inclusion of crypto to pay taxes in Mendoza? Tell us in the comments section below.
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