The Argentine Wine-Producing Province of Mendoza Adopts Cryptocurrency Tax Payments
Even though the crypto market is having a hard time, and the Fed’s hawkish stance on the industry isn’t helping, a number of countries have shown a lot of interest in digital assets at the same time.
Mendoza, the fifth most populous territory in Argentina and renowned for its wine production, now accepts cryptocurrency payments for provincial taxes.
According to a press release issued by the government on August 27, Mendoza residents may pay their taxes and other government fees through the tax administration’s “pay online” section. After the Tax Administration Mendoza (ATM) said that the agency had added a new way to pay online, the news was made public.
The new payment service launched on August 24 accepts stablecoins such as Tether’s USDT and DAI at this time. It supports all wallet types and executes transactions using QR codes.
When a user connects via gov. portal using “pay online,” it requests the stablecoin currency the user wishes to pay in, then sends the user a QR code containing the equivalent tax amount in pesos. Notably, funds will be converted into pesos immediately using an unnamed online payment provider.
Argentina’s escalating inflation rates prompted crypto adoption.
The government made this choice after the state’s inflation rate skyrocketed. As a result, the instability of the country’s peso led to an increase in demand for the US dollar, making stablecoin an effective weapon. Notably, many locals have already adopted digital assets in response to the state’s rising inflation. According to data from last month, the inflation rate in Argentina’s economy has reached a 20-year high of 71%, while the central bank has skyrocketed interest rates to 69.5%.
Mastercard announced earlier this month that it would issue prepaid cards for Argentina’s 90 million online stores in partnership with Binance, the world’s largest exchange by trading volume. These cards enable the use of fourteen cryptocurrencies, including the USDT stablecoin, as well as ATM withdrawals wherever MasterCards are accepted.
El-innovative Salvador’s move to make bitcoin a legal tender, citing the unbanked nation as the reason for the decision, sparked a flurry of interest in cryptocurrencies in Argentina.Afterward, the president of Argentina, Alberto Fernandez, declared his openness to cryptocurrencies and his intention to follow in the footsteps of his fellow nation. However, since then, few accomplishments have been recorded.
Afterward, the president of Argentina, Alberto Fernandez, declared his openness to cryptocurrencies and his intention to follow in the footsteps of his fellow nation. However, since then, few accomplishments have been recorded.
Fernandez added in a statement;
“This is a topic that must be handled with care. In my case, as I am still unaware of it. Some still do not comprehend how this money comes into existence. These concerns are shared by many, which is why the project has not been expanded”.