Mendoza in Argentina accepts crypto for taxes
Citizens of the Mendoza Province in Argentina can now use cryptocurrencies to pay government fees and taxes, marking another step toward wider acceptance in the country.
The Mendoza Tax Administration (ATM) stated, on the 27th of August 2022, described the new Argentina crypto payment service is one that satisfies "the strategic objective of modernization and innovation". It provides "taxpayers different means to comply with their tax duties."
The 24th of August 2022 marked the beginning of official operations for the service, although, for the time being, it will only accept stablecoins such as Tether (USDT) as payment for taxes.
Using any wallet, such as Binance, Bybit, or Ripio, citizens can make payments through the portal on the ATM website. The system will send taxpayers a QR code when a user decides to pay using cryptocurrencies.
This code will contain the number of stablecoins converted to pesos by an anonymous online payment service provider. A receipt is mailed to the taxpayer once the ATM has received the payment.
Another significant step towards Argentina crypto adoption
The declaration made by the ATM is merely the most recent in a string of crypto-related adoptions that have taken place all around Argentina. At the beginning of this month, Mastercard announced that it would debut a card in Argentina that would handle 14 cryptocurrencies, one of which would be USDT, in advance of a broader rollout that would serve 90 million online and physical stores.
In April, Buenos Aires, the nation's capital, revealed its intentions to accept public financial transactions in cryptocurrencies like Bitcoin and Ethereum. The unpredictability of the economy has led to widespread adoption of digital payments, particularly stablecoins, the price of which has increased significantly since the departure of Argentina's economy minister in July 2022.
Tether stated that the previous month, the nation had "battled high levels of inflation over the entirety of its history." The volatility of the Argentine peso has led to a significant increase in the number of transactions in US dollars. Thanks to Tether, users in Argentina experiencing economic hardships now have access to a helpful tool.
The country has been fighting against inflation that it has been unable to keep at bay due to a lack of faith in the country's central bank and record levels of spending by the government.
A perfect storm of circumstances, including the depreciation of the Argentine peso, has resulted in many people turning to Bitcoin (BTC) and other means to hedge against inflation.
The market is still in the grips of the crypto winter, and the country's central bank intervened in May 2022 to block coin offerings. Despite these headwinds, the country's citizens continue to turn to stablecoins as a means of helping them store the value of their savings in United States Dollars denominated digital assets such as USDC.
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