Argentine province Mendoza now allows stablecoins to be used to pay for government services, including the payment of taxes, in USDT or DAI.
The announcement came over the weekend, stating that stablecoins are now supported as an option for paying taxes for the 1.7 million residents. The western Argentine province is the fourth most populated in the country.
Moving towards “modernisation and innovation,” the Mendoza Tax Administration (ATM) is exploring more online payment options for taxes.
Tether’s USDT and MakerDAO’s DAI are listed as the two stablecoin options for payment in a tutorial for paying taxes using crypto.
Taxpayers can use wallets from Binance, Ripio, Buenbit, Bitso, Lemon, and Bybit. Once taxpayer information and a preferred wallet are filled out and selected, a QR code is generated for users to pay with stablecoins.
Once a transaction is completed, the ATM will convert the stablecoins into Argentine Pesos, and will provide a receipt of the transaction.
Interestingly enough, the ATM’s site uses Bitcoin and Ethereum logos to indicate the cryptocurrency tax payment option – but does not support either of those coins.
With an annual inflation rate of 64%, Argentina has one of the highest inflation rates in the world. As such, crypto is popular and operates on its true use case within the troubled economy. While the Argentine Peso is rapidly losing currency value, Argentines are more confident with using Bitcoin.
This May, Banco Galicia, Argentina’s largest private bank, launched a crypto trading service for its customers. The Buenos Aires-based bank offers trading options for Bitcoin, Ethereum, USD Coin, and XRP.
Argentina’s federal government has been taking steps to regulate cryptocurrencies – such as this provincial initiative. Looking to crack down on money laundering, the Argentine government now requires crypto exchanges and firms to report additional information to conduct services in the country.
Argentina has been rife with a history of severe inflation and state bankruptcies, giving its residents a reason to use crypto. In late July, the Argentine central bank restricted the purchase of US dollars at the official exchange rate for Bitcoin traders. The decision was made to stop money from leaving the country – and cryptocurrency makes the process easier.