The Province of Mendoza in Argentina officially accepts stablecoins as a method of paying taxes, according to a statement made on Saturday by the local government.
According to the official website, the Mendoza Tax Administration (ATM) is expanding the online tax payment choices available to its almost two million citizens to “modernize and innovate.”
Things related to tax payments
Users can proceed with payments using any cryptocurrency wallet, including Binance, Bitso, Buenbit, Bybit, Ripio, and Lemon, as per Mendoza’s government-published instructions. According to the Clarín newspaper, Mendoza will only take stablecoins for tax payments, including DAI and USDT.
The system sends a QR code with the equivalent amount of stablecoins converted to pesos by an unnamed online payment service provider once the user selects cryptocurrencies as their payment option.
A receipt is given to the taxpayer after ATM receives the payment.
The administration also stated that an undisclosed internet payment service provider would change money received by Mendoza into Argentine pesos.
Why did the government think to choose crypto?
As Argentine inflation soars, more people are turning to cryptocurrencies, prompting the municipality of Mendoza to decide to accept cryptocurrency for tax obligation payments. According to data released earlier this month, annual inflation reached a 20-year high of 71%, and the central bank raised interest rates by 950 basis points to 69.5%.
Recently, economists predicted that the country’s inflation rate would reach 90% by the end of the year.
Other steps towards crypto adoption
Before a more extensive rollout supporting 90 million online and physical establishments, Mastercard stated earlier this month that it would provide a card in Argentina that supported 14 coins, including USDT.
The nation’s capital, Buenos Aires, announced plans to begin accepting cryptocurrency for use in public financial transactions in April.
