Argentina’s Mendoza province is accepting crypto for taxes and fees (administrative) as of August 24. It is called the New Mendoza Tax Administration crypto payment service.
Citizens from the Mendoza Province may now pay government fees and taxes using cryptocurrency, marking another step toward wider crypto acceptance in Argentina.
The Mendoza Tax Administration (ATM) hailed the new crypto payment option as achieving “the strategic aim of modernization and innovation,” providing “taxpayers with multiple methods to comply with their tax duties” in an Aug. 27 statement.
The service officially launched on August 24, however, for the time being, it will only take stablecoins such as Tether (USDT) for tax payments. Now, Argentina’s Mendoza province is accepting crypto for taxes and fees.
Citizens can use any crypto wallet, such as Binance, Bybit, or Ripio, to pay through the portal on the ATM website.
When a user selects cryptocurrencies as their payment method, the system generates a QR code with the same amount of stablecoins converted to pesos by an unnamed online payment service provider.
When the payment is received by the ATM, a receipt is emailed to the taxpayer.
Crypto Adoption – A Step Closer
The ATM’s announcement is simply the most recent in a long line of crypto-related adoptions in Argentina.
Mastercard stated earlier this month that it will introduce a card that accepts 14 cryptocurrencies, including USDT, in Argentina, as part of a larger rollout that would include 90 million online and physical establishments.
The country’s capital, Buenos Aires, announced intentions in April to begin allowing public financial transactions in cryptocurrency.
In an uncertain economy, cryptocurrencies, particularly stablecoins, have found widespread acceptance, with prices skyrocketing following the departure of Argentina’s economics minister in July.
Last month, Tether stated that the country had “fought against high levels of inflation throughout its history.” Because of the volatility of the Argentine peso, there is a considerable demand for US dollars, as follows:
“Tether has provided a real tool for users facing economic crises in Argentina.”
Since 2016, the country has been fighting inflation one-sidedly, as distrust in the central bank and government expenditures have reached new highs.
When combined with the Argentine peso’s devaluation, it’s a perfect storm of circumstances that has pushed many people into the arms of Bitcoin (BTC) and crypto to protect themselves from inflation.
“USDT allows Argentinians to access a market that is truly global and liberates them from local black markets with highly constrained liquidity resulting in high premiums. It also empowers them to hold Tether in ways that cannot be confiscated by the government, unlike local bank accounts,” added Tether.
Despite the market still being in the grip of a crypto winter and the central bank intervening to prohibit coin offers in May, individuals in the nation continue to turn to stablecoins to help store the value of their savings in US dollars (USD).
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