The Argentine province of Mendoza has introduced a system that allows taxpayers to pay their taxes in full in cryptocurrencies. The system, launched this week, is part of a strategic push to update and digitize payments by the IRS in Mendoza and uses third-party services to process transactions.
Mendoza goes to encryption for tax payments
More and more governments are listing cryptocurrencies as a way to pay for state obligations because of their recent popularity. Mendoza, a province in Argentina, is one of the first in the country to implement a digital system that allows taxpayers to make payments and other operations in digital currencies.
The system, launched on August 24, is part of a strategic move by the provincial authorities to modernize tax payment and honor the state, providing many options for citizens to fulfill their obligations. Nicholas Chávez, Director General of the Tax Administration of Mendoza, stated:
It’s another door to make it easier for taxpayers to pay taxes. This is a service offered by the payment processor through which we have integrated new technology, such as virtual wallets and cryptocurrencies.
While the payment facility is directly listed on the provincial page, payments are processed by a third party company, which accepts encryption and liquidates payments made in Argentine peso to the province. The system only receives payments in stablecoins, including USDT, USDC and DAI, among others. In this way, the system maintains the volatility of its operations.
Similar initiatives
Other municipal governments in Argentina have also announced the inclusion of cryptocurrencies as a means of paying taxes. Last April, the Head of Government of Buenos Aires, Horacio Larita, announced that the city was also planning to provide crypto payments.