Mendoza, Argentina’s province, has created a system which allows taxpayers to fully pay their taxes with cryptocurrencies. This system was implemented by Mendoza’s tax authority as part of its strategic push to modernize and digitize payments. It uses services from a third party to process transactions.
Due to cryptocurrency’s popularity, more and more governments are using cryptocurrencies to pay state-related obligations. Mendoza, Argentina’s province, was the first to adopt a digital system that allows taxpayers and others to make payments using digital currencies.
This system was launched by the provincial authorities on August 24th. It is part of a strategy to modernize tax and state tribute payments. The system offers citizens several options for fulfilling their obligations. Nicolas Chavez is the general director of Mendoza’s tax administration authority.
This is another way to make it easier to pay taxes to taxpayers. This service is offered by the payment processor. We have integrated new technology such as virtual wallets or cryptocurrencies.
The payment utility is embedded directly in the page for the province. However, payments are processed by a third party company that accepts crypto and transfers payments in Argentinian dollars to the province. The system accepts only stablecoin payments, such as USDT and USDC. This allows the system to maintain volatility.
Other municipalities in Argentina and Latam also announced that cryptocurrencies would be accepted as a payment method for taxes. The head of Buenos Aires’ government, Horacio Larrata, , announced last April that they were planning to introduce crypto payments for taxes. Larreta indicated that this use case could be implemented along with a blockchain-based identity system in 2023.
Rio de Janeiro is one of the largest cities in Brazil. also reported that these assets would be included in taxes payments in 2023 because of their popularity. Rio’s plans extend even further. They envision crypto payments for services such as taxi rides and NFTs, as well investing part of city funds in crypto through the Municipal Committee for Crypto Investments.