It is now possible to pay taxes using cryptocurrencies in the Argentine province of Mendoza. In an official press release published by the local government, the Mendoza Tax Administration (ATM) is offering residents the possibility to pay their taxes using digital currencies. The available options include DAI and Tether (USDT), two of the largest stablecoins in the market.
Argentine Province of Mendoza Accepts Crypto Payments for Taxes
Argentina is leading in terms of cryptocurrency adoption. This time, inhabitants of the province can pay their taxes with cryptocurrencies (Tether and DAI). This new initiative aims at innovating the way in which taxes are collected in the province and making it easier for residents to pay their taxes on time.
There is a large number of people in Argentina working for foreign companies and receiving their payments in digital currencies, including stablecoins. Therefore, this could be a great opportunity for people to directly pay their taxes without having to sell the stablecoins that they receive.
Furthermore, when the person pays the taxes, the payment processor will automatically convert the USDT or DAI into Argentine Pesos (ARS). Therefore, the invoice will reflect the amount paid in ARS rather than USDT or DAI. This shows that local authorities are not planning to use these digital currencies for further payments.
In order to make it even easier for people, a step-by-step guide has been created, explaining to users how to pay using their favourite stablecoin. At the moment there is a large number of cryptocurrency exchanges supported. Some of these platforms include Binance, Bitso, buenbit, RIpio, Bybit, Lemon, or any other crypto wallet.
Despite the fact that there is no information about future plans, it could be possible for the Province of Mendoza to add new digital currencies in the future such as Bitcoin (BTC) or Litecoin (LTC). However, this is just a very positive beginning for crypto adoption around the world.
Argentina: A Leader in Crypto Adoption
Argentina is a clear leader in terms of cryptocurrency adoption around the world. There are many reasons why Argentinians prefer to use digital assets rather than their local currency, the Argentine peso.
For over a decade, Argentina had constant inflation rates above 10%, and, in recent months, inflation has been higher on a month-to-month basis than in Venezuela. It is expected for inflation to reach rates as high as 90% or even 100% in the coming months.
At the same time, Argentinians have been known for using USD rather than ARS for savings. That’s something understandable considering the high inflation rates. Citizens rush to the black market due to the fact that severe restrictions have also been applied to the forex market.
With the expansion of virtual currencies, Argentinians have also had the possibility to avoid currency controls by using different crypto exchanges and wallets. That means that people are able to buy USDT, DAI, and other stablecoins in just a few simple steps. With this new implementation offered by the Province of Mendoza, it will be possible for people to pay their taxes using stablecoins.