Mendoza Province in Argentina will accept Bitcoin for tax payments.
Mendoza, a province in the western central part of Argentina, has said that it will accept Bitcoin as a way to pay taxes and other government bills.
Now, when it comes to bouncing in the bright lights of modernization, we can see those proud governors putting the flashy Bitcoin next to their financial rules, making sure to wear a sporty medal of honour for the rest of their lives.
The general director of the tax authority in Mendoza says, “This is another gate to make it easier for taxpayers to pay their taxes.”
Nicolas Chavez added, “This is a service that the payment processor offers, and we’ve added new technology like virtual wallets and cryptocurrencies.”
Gaugers in a province known for its wine have set up ATMs so that people can pay their taxes and get receipts right away. “We make sure that from a legal standpoint, this kind of payment is guaranteed,” says one. “The payment currency is guaranteed when someone uses blockchain technology (encrypted information about a transaction on the network),” says Chavez, who is also a tax lawyer.
The government gets the final taxes in Argentinian Pesos, but the process of collecting taxes starts with third parties in the private sector who receive the taxes in Bitcoin and use internal exchanges to avoid price changes.
Argentina is starting to catch up to Bitcoin.
Mendoza-like programmes before. For example, the city government of Buenos Aires has made plans for 2023 to accept Bitcoin and use its own technology for identification systems.
Even though we think Bitcoin will be a threat to government power, steps like those taken in Argentina and El Salvador can help speed up the change from fiat money to Bitcoin. The result of this change can help governments cut down on the amount of paperwork they have to do and serve their people better. The rules that are currently in place in Mendoza can be used as a test case for Bitcoin to be used more widely.