Argentine Province of Mendoza to Accept Stablecoins for Tax Payments

The fifth most populous province of Argentina will now accept cryptocurrencies, especially stablecoins, for tax payments, according to the Mendoza Tax Administration (ATM).

Mendoza province will allow roughly two million residents to pay taxes and fees using stablecoins like Tether (USDT) and Dai using their crypto wallets. 

“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,” a spokesman said.

The move comes four months after the country’s capital city announced it would accept Bitcoin (BTC) as payment for taxes and fees. On April 27, Buenos Aires started accepting crypto payments after the city mayor Horacio Rodriguez Larreta said the decision was part of Buenos Aires’ futuristic plans. 

“The city is not going to have crypto in public accounts, but through an agreement with virtual wallets, we are going to add one more payment option to the ones we already have, with the idea of making things easier,” the mayor added.

Argentina’s openness to cryptocurrencies

As inflation in Argentina worsens, the move towards crypto assets could be a way that the tax office uses to rein in the nearly 70% year-on-year inflation afflicting the peso.

Argentina’s President Alberto Fernandez is open to adopting digital currencies as legal tender. He said in an interview last year, that going forward with crypto must be treated carefully since he lacks good knowledge of the asset class.

“This is a subject that must be treated carefully. In my case, because it is still unknown to me. Some still don’t understand how this money is materialized. These doubts I have are shared by many, that’s why the project has not expanded further,” Fernandez concluded.

Four weeks ago, Binance and Mastercard announced a “crypto rewards card” for the Latin American country. Argentina is the only and first country on the continent to take advantage of the partnership between the leading crypto exchange and the giant financial service provider.