The adoption of cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) has been gaining traction over the years with a growing number of jurisdictions worldwide now accepting digital currencies as payment for taxes. The latest to join the trend is Mendoza, a province in Argentina, which recently implemented a system allowing its taxpayers to use crypto when paying their taxes.
The Argentinian province of Mendoza became one of the first in the country to implement a system that allows taxpayers to make payments and other operations with crypto, BItcoin.com reported. The system is part of the province’s push for the digitalization and modernization of payments of taxes within its jurisdiction.
The new digital system was launched on August 24, 2022. Aside from modernizing the province’s collection system, it also offers more payment options to taxpayers to settle their obligations.
“It is one more door to facilitate the payment of taxes to taxpayers,” Nicolas Chávez, general director of the Mendoza tax administration authority, said. “This is a service offered by the payment processor with which we have incorporated new technology, such as virtual wallets and cryptocurrencies.”
Taxpayers can easily access the new system as it is directly embedded in the official website of the province. Processing of the crypto payments is done by an unnamed third-party company.
Mendoza’s new digital payment system only accepts stablecoins such as USDT, USDC, and DAI. However, the third-party payment processing company will automatically convert the crypto payments into Argentinian pesos before forwarding the funds to the province.
Aside from Mendoza, other municipal governments in Argentina and in other Latin American countries have also initiated moves to include crypto as one of the options for paying taxes. For instance, the head of the government of Buenos Aires, Horacio Larreta, announced in April that the city is planning to accept crypto payments, which is expected to be implemented next year alongside a blockchain-based ID system.
Similarly, Rio de Janeiro plans to introduce crypto payment for taxes by 2023. However, Rio’s crypto plans would go beyond tax payments as the city wants crypto payments for other services such as taxi, and the acceptance of non-fungible tokens (NFT) to promote culture, arts, and tourism.