As of the 24th of August, the province of Mendoza in Argentina is now accepting cryptocurrency payments for taxes and fees (administrative). The service is known as the Crypto Payment Service of the New Mendoza Tax Administration.
One further step has been taken toward wider bitcoin acceptance in Argentina with the announcement that residents of the province of Mendoza can now pay government fees and taxes using cryptocurrency.
In a statement dated August 27, the Mendoza Tax Administration (ATM) lauded the newly introduced cryptocurrency payment option for fulfilling “the strategic purpose of modernization and innovation” and giving “taxpayers with different means to comply with their tax duties.” The 24th of August marked the formal launch of the service; however, in order to process tax payments at this moment, it will only accept stablecoins such as Tether (USDT). The province of Mendoza in Argentina is now accepting cryptocurrency payments for taxes and fees.
Paying for purchases made through the portal on the ATM website can be done with virtually any cryptocurrency wallet, such as Binance, Bybit, or Ripio.
When a user chooses to make a payment with cryptocurrencies, the system provides a QR code containing the same number of stablecoins that has been converted to pesos by an undisclosed online payment service provider.
When the ATM has successfully processed the payment, a receipt will be sent to the taxpayer via email.
One Step Closer to Widespread Cryptocurrency Use
The unveiling of the cryptocurrency ATM is only the most recent in a long line of crypto-related adoptions that have taken place in Argentina.
At the beginning of this month, Mastercard made an announcement that it would be introducing a card in Argentina that would accept 14 different cryptocurrencies, one of which is USDT, as part of a bigger rollout that would encompass 90 million different online and offline companies.
In April, the city of Buenos Aires, which serves as the capital of Argentina, made public its desire to begin permitting public financial transactions to be conducted using cryptocurrencies.
The broad adoption of cryptocurrencies, particularly stablecoins, has occurred despite the unpredictability of the economy; this is evidenced by the meteoric rise in price that occurred after the resignation of Argentina’s economics minister in July.
Tether made this statement about the country a month ago, saying that throughout its history, it had “fought against significant levels of inflation.” The instability of the Argentine peso has resulted in a significant increase in the demand for U.S. dollars, as can be seen in the following: Since 2016, the country has been waging an unbalanced war against inflation, as mistrust in the country’s central bank has reached new heights and government spending has reached record levels.
It is a perfect storm of circumstances that has pushed many individuals into the arms of Bitcoin (BTC) and crypto to protect themselves from inflation. This has been compounded by the devaluation of the Argentine peso, which adds to the severity of the situation. Individuals in the country continue to turn to stablecoins as a means of helping them store the value of their savings in US dollars, despite the fact that the market is currently mired in the grips of a crypto winter and that the nation’s central bank intervened in May to prevent coin offerings (USD).