The Argentine state of Mendoza has implemented a system that allows taxpayers to pay their taxes entirely in cryptocurrency. Launched this week, the system is part of the Mendoza tax authority’s strategic push to modernize and digitize payments and uses a third-party service to process transactions.
Mendoza goes crypto for tax payments
More and more governments are incorporating cryptocurrencies as a form of payment for state-related obligations due to their recent popularity. The Argentine state of Mendoza is one of the first to implement a digital system that allows taxpayers to make payments and other transactions in digital currencies.
In the year The system, which launched on August 24, is part of a strategic move by the state authorities to modernize taxation and state tax collection and provides citizens with several options to meet their obligations. Nicola Chavez, Executive Director of the Mendoza Tax Administration Authority, said:
It is one more door to facilitate tax payment for taxpayers. This is a service provided by a payment processor where we incorporate new technologies such as virtual wallets and cryptocurrencies.
Although the payment facility is embedded directly on the province’s page, payments are processed by a third-party company, which accepts crypto and remits the payment in Argentine pesos to the province. The system only accepts payments in Stablecoins including USDT, USDC and DAI. In this way, the system retains flexibility in its operation.
Other municipal governments in Argentina and Latin America have announced the inclusion of cryptocurrencies as a means of paying taxes. Last April, the head of the government of Buenos Aires, Horacio Lareta, announced that the city plans to introduce crypto payments for taxes. Laretta notes that this use case could be implemented in 2023 with a blockchain-based identification system.
Rio de Janeiro, one of the largest cities in Brazil, reports that in 2023 these properties will be included for tax payments due to their popularity. But Rio’s plans go further by using crypto payments for other services such as taxi rides and NFTs to promote the arts, culture and tourism sectors, as well as investing part of the city’s funds in a new institution, the Municipal Committee for Crypto Investment.
What do you think about the inclusion of crypto to pay taxes in Mendoza? Tell us in the comments section below.
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