The Mendoza Province of Argentina has started accepting cryptocurrency tax payments

The Mendoza Province of Argentina has started accepting cryptocurrency tax payments.

Government agencies and institutions are increasingly accepting cryptocurrency payments. Governments are exerting pressure on financial institutions to upgrade their payment systems in order to keep up with the times.

In order to facilitate tax payments in cryptocurrency, organizations can employ blockchain technology.

Argentine Mendoza is the newest territory to embrace cryptocurrency transactions. Local governments have started taking cryptocurrency tax payments through a third-party arrangement.

When it comes to tax collection, Mendoza is all in on crypto.

The province of Mendoza in Argentina was an early adopter of electronic tax payments. A digital payment system using digital tokens has been adopted by the province for use by taxpayers.

This is just one of several efforts by regional authorities to make paying taxes and other state levies easier, and it went online on August 24. This would give people a variety of opportunities to fulfill their civic responsibilities.

General Director of the Tax Authority in Mendoza, Nicolas Chavez, says this is yet another method to simplify tax payments. Chavez emphasized that the provider’s services for supporting digital currency wallets were incorporated into the product.

Although a third party will handle the actual payment processing, it is integrated into the province’s official system. To comply with local regulations, the service will process cryptocurrency transactions in Pesos.

Furthermore, the website only acknowledges stablecoins (such as USDT, USDC, and DAI) as means of payment. So, the system is able to maintain stability despite external disturbances. The moniker “stablecoin” comes from the perception that stablecoins are more reliable than other digital currencies.

Projects Similar to This

Tax payments in bitcoin have been announced by additional local governments in Argentina and Latin America. Buenos Aires Mayor Horacio Larreta announced in April that the city would be using cryptocurrency to collect taxes.

Additionally, Larreta mentioned that the province might implement this use case using a blockchain-based identity system around 2023.

As a related matter, Rio de Janeiro, one of the major cities in Brazil, has also implemented a similar policy. The growing acceptance of cryptocurrency has prompted the city to accept it as a tax payment method in 2019.

To be sure, Rio has lofty goals, including the eventual acceptance of digital asset payments for services like taxi trips. The government also plans to employ NFTs to promote cultural activities and tourism. Additionally, it establishes the Municipal Committee for Crypto Investments to allocate funds for bitcoin investments within the city’s budget.

Adoption of cryptocurrencies is rather high in Latin America, in contrast to other regions. In spite of the good news, there are fundamental reasons why digital assets are becoming more popular in the Americas.

High inflation rates, a lack of reliable leadership, and the enormous number of persons without bank accounts have all contributed. This has created a massive opening for the growth of cryptocurrency transactions, and governments can use it to help increase their level of financial inclusion.

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.