1.7 Million Argentines Can Now Pay Taxes in Crypto in the Country’s Mendoza Province

This weekend, a province in Argentina announced that citizens could pay taxes and fees with cryptocurrencies.

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The tax administration in the province of Mendoza, the country’s fourth most-populous province, released a tutorial on how to pay provincial taxes using the method, outlining how 1.7 million citizens can connect their crypto wallet to the government webpage and use a QR code after connecting their crypto wallets from Buenbit, Binance Bitso, Ripio, Bybit or Lemon, among other options.

“This new service is part of the strategic objective of modernization and innovation carried out by the Mendoza Tax Administration, so that taxpayers have different means to comply with their tax obligations,” the government body said.

Right now, it’s not clear if the government is receptive to payment in all cryptocurrencies, but there does appear to be support for stablecoins like Tether’s USDT and MakerDAO’s DAI.

After the payment is made, the website converts stablecoins into Argentine pesos and provides a receipt.

The Argentine peso has witnessed a dramatic monetary crisis due to government mismanagement. This has partly driven soaring crypto adoption rates in the South American country, which is currently running out of cash and unable to stop devaluation.

The government is trying to stem hyperinflation, which is threatening to rear its head, but it’s facing shrinking foreign reserves and a lack of confidence from overseas investors and bailout partners. The International Monetary Fund has already pledged $44 billion to Argentina and is unlikely to increase that number.

“The problem is we have never had such a weak real exchange rate, nor such a wide gap between the official and parallel rates, while reserves were this low,” Portfolio Personal Inversiones economist Emiliano Anselmi told Bloomberg this summer. “The government won’t be able to hold out much longer without a one-off devaluation.”

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Written by Bitcoin

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