Argentina’s Mendoza province now accepts crypto stablecoins as an option for income tax payments, announced the region’s government on Saturday. It is the fifth largest territory in the country, with a population of over 2 million.
The Mendoza Tax Administration (ATM) said that the move is part of its drive toward modernization and innovation that would benefit the taxpayers by providing them with an additional option to fulfill tax obligations.
An 11-page document released by the ATM outlines the procedure of the new payment process in cryptocurrencies. Tether’s USDT and MakerDAO’s DAI are the stablecoins currently approved as payment options.
Taxpayers can use any crypto wallet, including Ripio, Binance, Buenbit, Lemon, Bitso, and Ripio, to make the payments.
Once the “Pay online” option is selected on the official website, “Cryptocurrencies,” will show up as an option. On selecting that, a new window will appear with the details of the amount to be paid and a QR code, which needs to be scanned to initiate payment from a crypto wallet.
Stablecoins received by ATM will be converted to Argentine pesos immediately to complete the process by an undisclosed online service provider.
Mendoza isn’t the only province to allow tax payments in crypto. Argentina’s capital Buenos Aires had earlier announced plans to accept cryptocurrencies for tax payments; however, the launch date is yet to be announced.
For a country crippled with inflation, it might make sense to adopt cryptocurrencies – long seen as a hedge against inflation.
Even though Argentina’s President Alberto Fernández had expressed his interest to adopt Bitcoin as a legal tender last year, cryptocurrencies were added to the government’s anti-money laundering framework.
As things stand, matters related to crypto remain complicated for the country.