Argentina’s Mendoza province now accepts crypto for taxes and fees
In another shift towards widespread crypto adoption in Argentina, citizens of the Mendoza province can now pay government fees and taxes using cryptocurrencies.
In a statement on August 27, the Mendoza Tax Administration (ATM) described the new crypto payment service as meeting “the strategic goal of modernization and innovation,” and providing “taxpayers with different ways to comply with their tax obligations.”
The service officially began operations on August 24, but at this stage it will only accept stablecoins such as Tether (USDT) for tax payments.
Citizens can pay through the portal on the ATM website using all crypto wallets such as Binance, Bybit and Ripio.
When the user selects cryptocurrencies as a payment option, the system sends a QR code, with the corresponding amount of stablecoins converted to pesos by an undisclosed online payment service provider.
When the ATM receives the payment, a receipt is sent to the taxpayer.
Another step towards crypto adoption
The ATM announcement is just the latest in a long line of crypto-related adoptions across Argentina.
Mastercard announced earlier this month that it would launch a card supporting 14 currencies including USDT in Argentina ahead of a wider rollout supporting 90 million online and brick-and-mortar stores.
In April, the country’s capital Buenos Aires unveiled plans to start accepting public financial transactions in crypto.
An unstable economy has seen widespread adoption of cryptocurrencies, particularly stablecoins, which escalated in price after Argentina’s economy minister resigned in July.
In emails to Cointelegraph last month, Tether noted that the country has “battled high levels of inflation throughout its history.” Due to the instability of the Argentine peso, there is a high demand for US dollars, noting:
“Tether has provided a real tool for users facing economic crises in Argentina.”
Since 2016, the country has been in a one-sided battle against inflation, as a lack of confidence in the central bank and public spending reached new heights.
Related: Argentines Turn to Bitcoin Amid Inflation Concerns: Report
Combined with the weakening of the Argentine peso, it’s a perfect storm of events that has forced many into the arms of Bitcoin (BTC) and crypto to hedge against inflation.
“USDT allows Argentines to access a market that is truly global and frees them from local black markets with very limited liquidity that result in high premiums. It also allows them to hold Tether in ways that cannot be confiscated by the government, unlike to local bank accounts,” Tether added.
Despite the market still deep in a crypto winter and the central bank stepping in to block coin offerings in May, the country’s residents continue to turn to stablecoins to help store the value of their savings in US dollars (USD).
