Citizens of the province of Mendoza, Argentina, can now pay government fees and taxation using cryptocurrencies.
The paid service was launched on August 24. Another shift towards widespread adoption of cryptocurrencies
The Tax Office of Mendoza (ATM) described the new cryptocurrency payment services for the implementation of the strategic goal of modernization and the innovations offer taxpayers a variety of ways to comply with their tax obligations.
The official launch of the service took place on August 24. But at this stage, it only accepts stablecoins like Tether (USDT) to pay taxes.
Citizens can make payments through the portal on the ATM website using crypto wallets such as Binance, Bybit and Ripio. When a user selects cryptocurrency as a payment method, the system sends a QR code with the equivalent amount of stablecoins converted to pesos by an anonymous online payment service provider.
When the ATM receives the payment, a receipt is sent to the taxpayer.
The announcement of ATMs is the latest in a series of cryptocurrency adoptions across Argentina. Earlier this month, Mastercard announced the launch of a card in Argentina that supports 14 currencies, including USDT, ahead of a wider launch that will support 90 million online and brick-and-mortar stores.
In April, the country’s capital, Buenos Aires, announced plans to start accepting government financial transactions in cryptocurrency.
The volatile economy has increasingly gripped cryptocurrencies, especially stablecoins, which surged after the resignation of Argentina’s economy minister in July.
In statements sent to Cointelegraph last month, Tether noted that the country has “battled high levels of inflation throughout its history.” Due to the instability of the Argentinian Peso, there is high demand for US dollars, noting:
“Tether has provided a real tool for users facing the economic crises in Argentina.”
Since 2016, the country has been waging a one-sided fight against inflation with growing distrust of the central bank and government spending.
Coupled with the devaluation of the Argentine peso, this is the perfect storm of events that many people need to protect against inflation in the hands of Bitcoin (BTC) and cryptocurrencies.
“USDT allows Argentinians to access a market that is truly global and liberates them from local black markets with highly constrained liquidity resulting in high premiums. It also empowers them to hold Tether in ways that cannot be confiscated by the government, unlike local bank accounts,” added Tether.
Although the market is still deep in crypto winter and the central bank limited the supply of coins in May, citizens of the country are still turning to stablecoins to keep their savings in the United States Dollar (USD).
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