Mendoza Province, popular for its wine production in Argentina now allows its citizens to make their tax payments entirely using cryptocurrencies.
Stablecoins like Tether’s USDT and MakerDAO’s DAI are the two cryptocurrency payment options available. Although, citizens can make these payments using several crypto wallets like Binance, Bitso, Buenbit, Bybit, Ripio, and Lemon.
Every such crypto payment made would immediately be converted to the Argentine Pesos. To complete the payment processes, the service of a third-party provider which is yet to be disclosed is required. Through the Mendoza Tax Administration (ATM), over two million Argentines in Mendoza (the fifth largest territory in the area) now have access to more online payment options for their taxes.
This new move is strategic to the modernization and digitization of the payment process in the Mendoza tax system enabling Argentines to meet their tax obligations.
According to Nicolas Chávez, the current Director General of Tax Administration;
“It’s another door to facilitating the payment of taxes to taxpayers. This is a service offered by the payment processor in which we have integrated new technologies such as virtual wallets and cryptocurrencies.”
Exploring The Crypto Tax Payment Option
At the point of payment, the citizens will need to access the official ATM website, then click on the ‘Pay online’ option. Next, users will be directed to a page where they get to choose the payment part of choice which is ‘Card Payment’.
After the preliminary stage of filling out necessary data on a form, users with a crypto wallet get to scan a QR code which is generated by the ATM site. When it has finally been processed and converted into pesos, the payee is immediately issued a transaction receipt.
Invariably, Argentina’s tilt towards crypto became obvious and rampant in the midst of the brewing prevalent extreme market condition.
To avoid a devaluation of the country’s legal tender Peso, stablecoin was used as a hedge. Sometimes before the popularization of stablecoins, the government through the central bank of Argentina otherwise known as Banco Central de la República Argentina (BCRA) issued a decree to all exchanges to halt all crypto services and offerings to its citizens.