Argentina’s wine-producing Mendoza province adopts crypto payments to receive taxes
Although the crypto market has fallen on hard times with the Fed adding fuel to the fire with its hawkish approach to the industry, some countries have shown incredible interest in digital assets at the same time.
The fifth most populous territory of Argentina, Mendoza, known for its production of wine, now accepts crypto payments to receive provincial taxes.
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According to the press release published by the government on August 27, residents of Mendoza are allowed to pay their taxes and other public fees using the “pay online” section of the tax administration. The announcement came to the public after the Tax Agency Mendoza (ATM) revealed that the agency had added a new payment method to make it easier for users to pay online.
The new payment service launched on August 24th currently accepts stablecoins such as Tethers USDT and DAI. It supports all types of wallets and completes a transaction using a QR code.
When a user connects via gov. portal using “pay online”, it asks the stablecoin currency users want to pay in, and then sends a QR code to the user with the corresponding amount calculated against the native currency, pesos. Specifically, funds will be converted into pesos instantly, using an undisclosed online payment service provider.
The press release added;
“This new service is part of the strategic goal of modernization and innovation carried out by the Mendoza Tax Administration, so that taxpayers have different means to comply with their tax obligations.”
Argentina’s inflation numbers led to crypto adoption
The government took this decision after the inflation rate skyrocketed in the state. As a result, the instability of the country’s peso pointed towards higher demand for the US dollar, making the stablecoin a thriving tool to combat. Notably, many locals have already adopted digital assets after seeing rising inflation in the state. According to last month’s statistics, Argentina’s economy has reached a 20-year high inflation rate of 71%, with the central bank soaring interest rates to 69.5%.
Earlier this month, Mastercard announced the issuance of prepaid cards for Argentina’s 90 million online stores in partnership with the world’s largest exchange by trading volume, Binance. These cards enable consumers to use 14 cryptocurrencies, including the USDT stablecoin, in addition to allowing withdrawals from bank ATMs where MasterCard is supported.
Cryptocurrencies caught the hype in Argentina after neighboring El-Salvador’s innovative move to make bitcoin a legal tender, citing the unbanked nation as the reason behind the decision.
Related reading: News from El Salvador, late August: Preparations for Bitcoin Day’s 1st anniversary
Afterwards, Alberto Fernandez, president of the Argentine state, represented his openness to crypto last and intended to follow in the footsteps of his fellow country. Unfortunately, few achievements have been marked since then.
Fernandez added in a statement;
– This is a topic that must be treated carefully. In my case, because it is still unknown to me. Some still do not understand how this money materializes. These doubts I have shared by many, that is why the project has not expanded further”.
Featured image from Pixabay and chart from TradingView.com
