Argentina's Mendoza Province Starts Accepting Tax Payments in Crypto

Argentina's Mendoza Province Starts Accepting Tax Payments in Crypto

Mendoza, a province in Argentina, has started accepting tax payments from taxpayers with cryptocurrencies. The system was launched this week and is part of a strategic move for the modernization and digitalization of payments by the tax authorities of Mendoza. It uses the services of a third party to process the transactions.

Stablecoins for Tax Payments in Mendoza

Due to their recent popularity, more and more governments are accepting cryptocurrencies as a way of receiving state-related obligations. Mendoza, a province of Argentina, is one of the first in the country to launch a digital system that allows taxpayers to make payments with digital currencies.

The system was launched on August 24 and is part of a strategic move by the authorities of the province to modernize the payment of tax. The system offers citizens new options to fulfill their tax obligations to the state. Nicolas Chávez, General Director of the Mendoza Tax Administration Authority, stated:

"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."

While the payment utility is directly embedded in the page of the province, the payments are processed by a third-party company, which accepts crypto and liquidates the payments made in Argentinian pesos to the province. The system only receives payments in stablecoins, including USDT, USDC, and DAI, among others. In this way, the system maintains volatility in its operations.

Similar Initiatives

Other municipal governments in Argentina and Latin America have also announced the inclusion of cryptocurrencies as a means of payment for taxes. Last April, the Head of the Government of Buenos Aires, Horacio Larreta, announced that the city was planning to introduce crypto payments for taxes. Larreta stated that this use case could be implemented in 2023 alongside a blockchain-based identification system.

Rio de Janeiro, one of the biggest cities in Brazil, also reported the inclusion of these assets as payments for taxes in 2023 due to their popularity. But Rio’s plans extend further, envisioning crypto payments for other services like taxi rides and NFTs to promote arts, culture, and tourism, as well as investing part of the city's funds in crypto through a new institution, the Municipal Committee for Crypto Investments.