The rate of cryptocurrency adoption in Argentina has skyrocketed over the past year, and the government is now looking for a way to tap into the sector’s growth. Citizens in Mendoza Province will now be able to pay government fees and taxes using cryptocurrencies.
Mendoza province to accept crypto for fees and taxes
The Mendoza Tax Administration (ATM) stated on August 27 saying that the new cryptocurrency payment services fulfill the goal of supporting innovation and modernization. It will also allow taxpayers to have a different way of complying with tax obligations.
The service launched by the Mendoza province administration officially started on August 24, and it will only endorse stablecoins such as Tether (USDT) to support tax payments. Citizens can accept payments via the portal on the ATM website using different crypto wallets such as Binance, Bybit, and Ripio.
After a user selects the cryptocurrency they want to use for payment, the system will send the QR code with the same number of stablecoins converted into pesos using an online payment service provider that is not yet known. After the ATM receives payment, a receipt will be sent to the taxpayer.
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Boosting crypto adoption
This is just one of the Argentinian government’s efforts to endorse cryptocurrencies. Earlier this month, Mastercard announced it would release a card that supports 14 crypto assets, including USDT. The payments giant plans to roll out support in 90 million online and physical stores.
In April this year, Argentina’s capital, Buenos Aires, announced plans to endorse crypto in public finance transactions. The level of crypto adoption in Argentina has risen because of the unstable economy and the resignation of the country’s economy minister last month.
Tether issued a statement last month saying that the country had fought high inflation levels. Moreover, the instability of the Argentinian Peso has also boosted the demand for the US dollar, and Tether has provided a means where users can escape the financial crisis in the country.
The Argentinian government has been battling inflation since 2016, and the lack of trust in the government and the central bank has led to these inflation levels skyrocketing to new highs. The central bank stepped in to halt coin offerings as the crypto market went into a bear market. However, citizens have been turning to stablecoins as a store of value.
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