Argentinian Province Mendoza Starts Accepting Tax Payments in Crypto – Due to their recent popularity, cryptocurrencies are now accepted by an increasing number of governments as a means of paying for duties associated to the state. One of the first provinces in Argentina, Mendoza, has a digital infrastructure in place that enables taxpayers to make payments and conduct other transactions using virtual currency.
The system, which went live on August 24, is a tactical move by the province’s authorities to modernize the payment of taxes and state tributes while giving individuals a variety of options to complete their obligations. Mendoza Tax Administration Authority General Director Nicolas Chavez said: “It is one more door to facilitate the payment of taxes to taxpayers. This is a service offered by the payment processor with which we have incorporated new technology, such as virtual wallets and cryptocurrencies.”
People Also Read: Report Shows Indian Crypto Market Is Growing as the Country Has 115 Million Crypto Investors
Although the payment utility is immediately integrated into the province’s page, the payments are processed by a separate business that accepts cryptocurrency and converts Argentine peso payments made to the province into other currencies. Only stablecoins, including USDT, USDC, as well as DAI, among others, are accepted by the system as payment. The system keeps volatility out of its operations in this way.
Other local administrations in Argentina and Latin America have also declared that cryptocurrency will be accepted as a form of tax payment. Horacio Larreta, the head of Buenos Aires, declared in April of last year that the city would also be implementing cryptocurrency tax payments. According to Larreta, this use case could be put into practice in 2023 in conjunction with a blockchain-based identification system.
People Also Read: Bank of Russia Eases Restrictions on Purchases of Dollar and Euro Cash
One of Brazil’s largest cities, Rio de Janeiro, indicated that these assets would be included as tax payments in 2023 as a result of their growing popularity. However, Rio’s plans go even further; they include the use of NFTs to promote the arts, culture, and tourism, as well as crypto payments for other services like taxi rides, as well as the investment of a portion of the city’s funds through a new institution known as the Municipal Committee for Crypto Investments.
You must log in to post a comment.