Argentina’s Mendoza to Accept State Levy and Tax in Stable Coins

• Mendoza announces that it will accept tax and government levy in cryptocurrencies.
• The Tax Administration of Mendoza says that adoption of crypto fulfills the strategic objective of modernization and innovation.
• Unstable economy in the region caused many to embrace cryptocurrencies at large. 

A popular metropolis in Argentina, Mendoza announced that it will accept tax and other government-related levies in cryptocurrencies.

Speaking on the topic, Nicolas Chávez, general director of the Mendoza tax administration authority said:

It is one more door to facilitate the payment of taxes to taxpayers. This is a service offered by the payment processor with which we have incorporated new technology, such as virtual wallets and cryptocurrencies.

As of now, it is reported that only stable coins like Tether (USDT) will be accepted as tax payments by the tax authority.

Citizens will be able to pay their tax fees using any crypto wallet such as Binance, Bybit, and Ripio. The process involves a QR code which will be sent to the user upon selecting cryptocurrency as their payment method, then the equivalent amount of stablecoin converted to pesos will be transferred to by an undisclosed online service provider.

The procedure involved in the transaction shares similarities to when Buenos Aires, the capital of Argentina adopted crypto. The completion of a transaction involves a company that converts crypto to pesos as the government does not accept cryptocurrencies.

While grappling with an unstable economy, the country saw a widespread adoption of cryptocurrencies, following which many companies hopped on to the crypto bandwagon. One such company was Mastercard which announced it will launch a new card that supports 14 coins, including the USDT, ahead of its wider rollout intended to support 90 million online and physical stores.