Provinces in Argentina Ready to Accept Tax Payments Using Crypto Assets

Provinces in Argentina Adopt Crypto to Pay Taxes

News.Bitcoin.com launches, Nicolas Chavez, General Director of Mendoza's Directorate General of Taxes, said, "This system is one more door to help taxpayers pay taxes."

Chavez added that the company has implemented new technology to provide this service in conjunction with payment processors, such as digital wallets and cryptocurrencies.The payment feature is embedded directly on the Mendoza tax site page, but crypto payments are processed by third parties who receive crypto assets and exchange the assets into Argentine pesos for forwarding to provincial accounts.

The system only accepts payments in stablecoins, including USDT, USDC and DAI. This is implemented so that the volatility of crypto assets does not affect Mendoza's operations."We make sure from a legal point of view, payment is guaranteed when someone makes a transaction using the blockchain," added Chavez.

Provincial governments in Argentina and other Latin American countries have recently announced the acceptance of crypto as a means of paying taxes.In April, the head of the government of Buenos Aires, Horacio Laretta, announced that the city was planning to implement crypto payments for taxes. Laretta stated that this feature can be activated starting in 2023 along with a blockchain-based identification system.

Rio de Janeiro, one of the most populous cities in Brazil, plans to accept crypto assets for tax payments starting in 2023.Apart from taxes, the city has a vision for crypto payments for a variety of other services, including public transport. Rio de Janeiro also intends to use NFT technology to promote the arts, culture and tourism sectors.

Not only that, the government of Rio de Janeiro wants to invest some of the city's funds into the crypto sector through a new institution, namely the Provincial Committee for Crypto Investment.